Santa Cruz County investigates missing funds

SANTA CRUZ COUNTY, Ariz. — Santa Cruz County officials and the FBI are investigating the disappearance of millions of dollars from a county bank account that funds several school and fire districts.

At a meeting Monday, school and fire district leaders learned $4.1 million was missing, according to Sonoita Elgin Fire District Chief Marc Meredith.

“The idea that somehow money that was supposed to be used for public services could have been sent elsewhere for someone's personal gain is very troubling,” Meredith said.

The account reviewed was overseen by the Santa Cruz County Treasurer's Office. Former Treasurer Elizabeth Gutfahr resigned April 12 due to health and personal reasons.

The Patagonia Regional Times reported that Chase Bank alerted county officials to several suspicious transactions days before Gutfahr resigned. The FBI searched Gutfahr's home on April 16 – she was neither charged nor arrested.

At Monday's meeting, fire and school district leaders were asked to audit their own financial records dating back to when Gutfahr was first elected more than 10 years ago.

“We're absolutely going to do our due diligence and go back and see if we notice any discrepancies between what we were supposed to have and what we received,” Meredith said.

The fire chief said he was surprised the bank discovered the alleged embezzled funds before other employees of the Santa Cruz County Treasurer's Office. Meredith said even firefighters have a strong set of checks and balances, one of which requires two signatories.

Despite the seven-figure loss, Meredith said he doesn't expect any interruption to fire and medical services.

“It’s just frustrating to know that we could have benefited from additional funding to serve our community,” Meredith said.

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