Gress Pens Three Fraud Prevention Bills

Arizona State Representative Matt Gress (R-4) introduced three House bills fulfilling promises he made in the aftermath of the Santa Cruz County embezzlement scandal. House Bills HB2368, HB2369, and HB2433 aim to strengthen financial oversight and prevent future occurrences of such fraud.

Santa Cruz County Treasurer Elizabeth Gutfahr, who served from 2012 to 2024, admitted to embezzling nearly $40M to finance personal expenses, including home renovations, her family’s cattle business, and the purchase of multiple vehicles. She also faced tax evasion charges for failing to pay up to $13 million in taxes.

The Department of Justice emphasized the severity of her actions, stating in a press release, “We expect public officials to serve as stewards of the government fisc — not to loot it.”

Gutfahr’s sentencing, initially scheduled for February 6, has been continued to May 7 at the request of U.S. Probation.

In August, Representative Gress expressed his concerns over the blatant theft, stating, “The actions detailed in the Arizona Auditor General’s report are deeply disturbing and represent a significant betrayal of public trust. This case stands as one of the worst instances of county financial misconduct in Arizona’s history, underscoring the need for more stringent oversight and accountability in the management of public resources.”

To address the potential risk of another such incident, Gress proposed legislation enhancing the auditing processes of county treasurers’ offices across Arizona:

• HB2368: Mandates quarterly financial reporting by county treasurers to the state auditor general.
• HB2369: Requires annual independent audits of county financial records.
• HB2433: Establishes a continuing education program for county treasurers and county board of supervisors members to ensure they are well-versed in their duties and responsibilities.

These bills have garnered bipartisan support, successfully passing through committees in the House and moving forward to the Senate for consideration.

Gress emphasized the necessity of these measures, stating, “The betrayal of public trust in Santa Cruz County underscores the critical need for rigorous financial oversight. These bills are designed to ensure transparency and accountability in the management of public funds.”

The proposed legislation aims to restore public confidence and prevent future financial misconduct within Arizona’s county governments. A video of the House proceedings, including a presentation of  Rep. Gress’ bills, is available here.