SANTA CRUZ COUNTY, Ariz — Officials in Santa Cruz County and the FBI are investigating how millions of dollars disappeared from a county bank account that provides funding to several school and fire districts.
During a meeting Monday, school and fire district leaders learned $4.1 million was unaccounted for, according to Sonoita Elgin Fire District Chief Marc Meredith.
“The idea that somehow, money that was supposed to be used for public services may have been sent somewhere else for somebody’s personal gain is very troubling,” Meredith said.
The account being scrutinized was overseen by the Santa Cruz County Treasurer’s Office. Former Treasurer Elizabeth Gutfahr resigned on April 12 citing health and personal reasons.
The Patagonia Regional Times reported Chase Bank warned county officials about multiple suspicious transactions days before Gutfahr’s resignation. The FBI searched Gutfahr’s home on April 16 — she has not been charged or arrested.
During 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 to see if we notice any variances 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 misappropriated funds before other employees within the Santa Cruz County Treasurer’s Office. Meredith said even the fire department has a robust set of checks and balances, one requires two signers.
Despite the seven-figure loss, Meredith said he does not expect any disruptions to fire and medical services.
“It is just frustrating to know that there might have been additional funding we could have benefited from to serve our community,” Meredith said.
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