TUCSON, Ariz. (KGUN) — Santa Cruz County is suing its former County Treasurer on a claim that she embezzled millions of dollars. Now a court order just took away Elizabeth Gutfahr’s control of her assets so she can’t conceal them.
More than 39 million dollars missing. That’ll get your attention won’t it? That’s what Santa Cruz County says it is missing as a result of actions by a now resigned County Treasurer so it’s suing to try to get that money back, with triple damages.
The lawsuit is filed in Pima County Superior Court against former Santa Cruz County Treasurer Elizabeth Gutfahr says instead of protecting taxpayer money, she stole it. In one motion, the County’s Lawyers say:
“...for more than a decade, Gutfahr used County funds as her own personal piggy bank to fund an opulent and extravagant lifestyle—purchasing several ranches, vehicles and more with County funds all across the state.”
Santa Cruz County says Gutfahr used a complex series of false financial reports and transactions to hide 181 transfers of more than 39 million dollars to companies she controls.
The County's lawyers say she kept the state auditor from getting wise by avoiding transfers in months when the auditor was more likely to track transactions.
While Santa Cruz County sues in Civil court, the County’s lawyers say the FBI is investigating a possible criminal case.
In the latest move, the judge in the case granted Santa Cruz County’s request to appoint someone to take control of Gutfahr’s assets to keep her from hiding them.
While requesting the receivership, the lawyers told the judge: “Gutfahr’s decade-long raiding of County funds demonstrates her lack of regard for the County’s interests. Nothing is stopping her at this point attempting to liquidate these assets in an effort to move the proceeds to somewhere beyond the County’s reach.”
KGUN9 tried to hear Gutfahr’s side of the story. We reached her by phone, and she hung up on us.
On Tuesday a meeting to approve the Santa Cruz County budget turned into an opportunity for taxpayers to blast Supervisors over 39 million dollars missing from the county treasury.
Beth Castro told Supervisors:
“And it just doesn't seem to be any kind of excuse. And now there's attorneys that we're going to have to pay for who's paying for that. We should not have to pay for mistakes that you guys as supervisors have made. I mean, I'm personally happy to see the two of you supervisors actually getting fired.”
Supervisors Bruce Bracker and Manny Ruiz did lose in last month’s primary election.
They can’t say much about the case but Ruiz said:
“There's been a lot of things that have been alleged today and I understand your frustration. Do you think I'm not mad? I'm really mad because I trusted Liz Gutfahr. You can shake your head ma'am and say that it's not. She was a trusted member of this community.”
