TUCSON, Ariz. (KGUN) — Elizabeth Gutfahr, the former treasurer for Santa Cruz County, pleaded guilty Thursday morning to federal charges of embezzling, money laundering and tax evasion.
Gutfahr was accused of stealing more than $38 million in Santa Cruz County money by transferring it to private bank accounts. Court documents claim that in one year alone, she transferred more than $11 million out of the county's accounts and into her own.
Gutfahr will be released until her sentencing hearing, set to take place in February of 2025. She has also agreed to restitution, ordered by a magistrate judge to pay back as much as she can of the more-than $38 million in public funds. Additionally, part of that restitution includes $13 million in penalties owed to the IRS.
KGUN 9 has received the following statement from her attorney:
“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.”
Prior to the federal charges, Gutfahr had been sued in civil court by Santa Cruz County. She was cooperating with civil court efforts to recover the money, though a court-appointed receiver working to sell off real estate and property has reported he may only be able to recover about one-third of the loss.
WATCH BELOW | Federal criminal embezzlement charge against former Santa Cruz Treasurer
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