Santa Cruz County supervisors unanimously ratify legal actions to recover funds tied to Gutfar embezzlement

The Santa Cruz County Board of Supervisors voted unanimously on Nov. 18 to ratify existing legal actions taken to recover funds tied to what the county described as the Gutfar embezzlement and to authorize additional legal steps connected to a suit involving the Auditor General and the State.

The ratification motion, moved and seconded in open session after an executive session for legal consultation, affirmed prior filings and actions by county management, the county counsel's office and outside counsel Snell & Wilmer and Weiss Brown. The motion specifically referenced a civil suit the county filed against Elizabeth Gutfar and related entities on Aug. 1, 2024, in Pima County Superior Court (case number read as C20244535). A second, related filing against the Arizona Auditor General and the State of Arizona was referenced as filed Nov. 14, 2024, in Maricopa County Superior Court (case number read aloud in the meeting record). The board also approved a follow-up motion authorizing any additional legal action necessary to pursue recourse tied to the Maricopa County case.

County legal counsel Mr. May told the board the executive session was to allow the board to ask privileged questions of counsel and to review the memorandum and filings before voting. "The memorandum goes into great detail as the basis for this ratification," Mr. May said, and he pointed board members and the public to materials posted on the county's and related public websites for background, including press releases and case filings. The record reflects the board considered two related motions and then voted "aye" on both.

The motions as read in open session named the law firms and described the scope as recovery of "any and all monies from all liable and responsible persons and entities as a result of the Gutfar embezzlement," and to authorize further legal action against the Auditor General and the State "to maintain or pursue legal recourse relating to" the Maricopa County Superior Court matter. The board chair announced both motions passed unanimously.

What happens next: the motions authorize county counsel and outside counsel to continue pursuing civil recovery and related litigation steps; the county noted memorandums and case documents are available on its public websites for anyone seeking further detail.

Quotes from the meeting: "The executive session is an opportunity for the board to ask questions of the legal counsel," Mr. May said, describing the attorney–client purpose of the closed discussion. "The memorandum goes into great detail as the basis for this ratification..." (remarks read in open session.)

The board concluded the item and moved to adjourn.

Ending: Both ratification motions carried by unanimous vote; the board did not provide further detail in open session beyond referencing the publicly posted memorandums and case filings.