Elizabeth Gutfahr Sentenced: County Moves Forward After Historic Embezzlement Case
NOGALES, AZ - On June 23, 2025, former Santa Cruz County Treasurer Elizabeth Gutfahr was sentenced to 15 years in federal prison after pleading guilty to multiple felony charges, including the embezzlement of more than $38 million from county accounts. She received 10 years for the combined charges of embezzlement and money laundering and another 5 years for tax evasion. The two terms will be served concurrently, meaning she will serve a total prison term of 10 years. Gutfahr also received three years of probation and has been ordered to pay more than $38 million in restitution.
Following the court proceeding, Gutfahr was immediately taken into federal custody.
According to federal sentencing guidelines, Gutfahr must serve at least 85% of her sentence before she is eligible for release. This means she will serve a minimum of 8.5 years and a maximum of 10 years in custody.
Gutfahr pleaded guilty in November 2024. As part of the plea agreement, she faced maximum penalties of up to 10 years for embezzlement, 20 years for money laundering, and 5 years for tax evasion.
“We would have preferred the maximum sentence to reflect the severity of the crime more accurately and to serve as a stronger deterrent,” the Santa Cruz County Board of Supervisors said in a statement. “What matters most to us now is recovering the losses on behalf of the people of Santa Cruz County and restoring public trust in our institutions. We remain committed to transparency and accountability moving forward.”
The theft had significant impacts on essential services, including local schools and fire districts. To date, approximately $5 million has been recovered and returned to those entities. The County anticipates recovering a total of $10 to $12 million through asset forfeiture. All recovered funds will be directed toward supporting the affected public services.
The investigation began in April 2024 when Chase Bank flagged 11 suspicious transactions involving county accounts. The County immediately notified the FBI, and Gutfahr’s access to county financial systems was revoked. A civil suit ensued, and a court-appointed receiver was appointed to locate and manage her assets. After the plea agreement was reached later that year, formal sentencing took place on June 23, 2025.
County leadership remains focused on restoring financial integrity and strengthening oversight. The Board has committed to enhancing internal safeguards and ensuring transparency to prevent similar breaches in the future.
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