The Auditor General’s Office concluded its sweeping investigation this week into a case of suspected fraud in Santa Cruz County.
The probe looked into a multi-year scheme by the county’s former treasurer. It’s latest development in an investigation that began earlier this year into Elizabeth Gutfahr — who served as treasurer for the tiny Arizona border county for more than a decade.
According to the report, Gutfahr siphoned nearly $40 million worth of public funds into business accounts in her name between March of 2014 and March of this year. It alleges she hid her actions by providing false statements to county officials and also could have given gifts and loans to county employees using the money.
The auditor general laid out a list of recommendations that county leaders should enact, including improved safeguards and training, to ensure similar fraud doesn’t happen again. The office also asks the Arizona Legislature to consider revising state statutes that block the auditor general from gaining access to county financial records.