Former Treasurer Charged with Embezzlement in Arizona

Former Santa Cruz County Treasurer Elizabeth Gutfahr has been charged with embezzling over $38 million from county funds, with allegations spanning a decade. Gutfahr allegedly made at least 182 unauthorized transfers to her personal accounts and failed to record these transactions, misleading county officials and auditors. Following her resignation in April amid financial irregularities, a civil lawsuit was filed by Santa Cruz County to recover the missing funds, which may only yield about one-third of the total loss. In response to the scandal, the county has also sued the Arizona Auditor General for negligence, claiming that inadequate audits allowed Gutfahr's scheme to go undetected for years. The county seeks damages of at least $40 million, asserting that more rigorous auditing could have caught the embezzlement sooner. As investigations continue, the incident has prompted calls for improved financial oversight in Arizona's public offices.