Santa Cruz County Board authorizes appeals, further legal action in former treasurer embezzlement case

The Santa Cruz County Board of Supervisors voted March 23, 2026 to authorize county legal action, including appeals and special actions, in litigation connected to alleged embezzlement by former county treasurer Elizabeth Gutfar and a related case involving the Auditor General.

Legal counsel told the board the "plain and simple directive is to take all legal action" necessary in both the Auditor General case and the receivership case against the former treasurer, including appeals where appropriate. The move followed a recent summary ruling the Vice Chair described as decided "on a technicality," and came after the board met in executive session for legal advice under Arizona law.

Vice Chair (speaker 1) said the board remains committed to recovering public funds and emphasized that legal steps will be pursued prudently so they do not compromise other cases involving school districts or fire districts. After discussion the board moved, seconded and voted in favor of authorizing further legal action; the Chair declared the motion carried.

The transcript records the board's direction but does not include a roll-call record with individual member votes or financial figures related to potential recoveries. County counsel will proceed with appeals and other legal remedies as appropriate and will report developments to the board as the cases proceed.

Next steps: counsel to pursue appeals and other legal remedies; county will provide updates to the board when appropriate.