“You abused your position as the Santa Cruz County Treasurer,” Judge Eric J. Markovich said as he addressed Elizabeth Gutfahr during her court appearance on Thursday, Nov. 21 in Federal District Court in Tucson. When he then asked Gutfahr, “Did you know you were stealing these funds?” she answered, quietly and with no emotion, “Yes, sir.”
Seven months after evidence of wrongdoing by the former Santa Cruz County treasurer was first uncovered, Gutfahr pleaded guilty to three federal charges: embezzlement, money laundering and tax evasion.
During the hearing, Gutfahr, who was dressed in black and appeared to have lost a significant amount of weight, looked sullen and despondent as she listened to Judge Markovich read the list of felonies she is charged with, as well as the the maximum penalty for each count: embezzlement—punishable by ten years in prison with $250,000 in fines and five years of mandatory supervision; money laundering—punishable by 20 years, with $500,000 in fines and restitution and eight years of mandatory supervision; and tax evasion —punishable by five years in prison with $100,000 in fines and restitution and three years of mandatory supervision.
Gutfahr was not taken into custody after her hearing, but will remain free until her sentencing hearing on Feb. 6, 2025. Gutfahr was ordered not to leave the state of Arizona, and must surrender any travel documentation, including any passport. She is also not allowed to open credit or bank accounts.
Gutfahr’s guilty plea is the result of a plea bargain agreement (download the 18-page document here) made with federal prosecutors in connection with her theft of more than $38.7 million in County funds over a ten-year period beginning in 2014. Judge Markovich stated that as a condition of the agreement, Gutfahr will not be able to appeal the court’s decision and that the debt owed to Santa Cruz County will be paid back first, followed by the outstanding tax debt.
After the hearing, Santa Cruz County Supervisor Manny Ruiz spoke with the PRT.
“I’m satisfied with her guilty pleas and that now, hopefully some justice will be issued to the citizens of Santa Cruz County,” Ruiz said. “With her guilty pleas, we are going to move on with the other avenues that we are exploring to try to recuperate as much of the funds that were taken so that we can try to make the entities that lost money as whole as possible.”
When asked about the County’s lawsuit filed on Nov. 14 accusing State Auditor General Lindsey A. Perry of negligence in failing to comply with generally accepted accounting practices and principles, and thus enabling Gutfahr’s embezzlement, Ruiz said, “We’ve filed the case and now we are just waiting to see. The Auditor General charged us for the audits, and they weren’t done for free.”
Later in the afternoon, representatives for Gutfahr released the following statement: “Liz Gutfahr wants to take responsibility for the harm she has caused to Santa Cruz County. She knows that by pleading guilty, and accepting the punishment she will face as a result, she is taking a step in the right direction to be accountable for her actions. Today was just a step, albeit a major one, along the road to redemption, and she will work to remain on that path for the rest of her life.”