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FBI Searches Property Owned by Former County Treasurer Liz Gutfahr

The Santa Cruz County Board of Supervisors appointed County Manager Jesus Valdez to be the interim County Treasurer at a special board meeting held on Thursday. Former County Treasurer Liz Gutfahr had resigned on April 12, after the County had notified her that she was to be suspended while an investigation into possible โ€œirregular bank transfersโ€ was conducted.

On April 3, the County had been alerted by JP Morgan Chase that there was evidence of suspicious transactions in the countyโ€™s accounts. โ€œApril 3rd was not a good day for us,โ€ commented Board of Supervisor Chairman Manny Ruiz at the Thursday meeting. The bank was prepared to freeze all the countyโ€™s accounts, but agreed to keep them open if the signatories on the accounts were changed. County Manager Valdez and Supervisor Ruiz are now the signatories on the accounts.

The County then reached out to the FBI and the Auditor Generalโ€™s office, and also hired a forensic auditor to look into the matter. 

On April 16, the FBI notified the Santa Cruz County Sheriffโ€™s Department that they would be executing a search warrant on property owned by Gutfahr in Tumacacori. No arrests were made at this time. 

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