Santa Cruz County has successfully recovered $5.9 million stolen by a former county treasurer through an insurance settlement. The recovered funds address losses from a significant embezzlement scheme that came to light in 2022, when ex-treasurer Mary Morales was arrested and charged with theft and misappropriation of public funds. County officials say this recovery represents a critical step in stabilizing the county’s finances and regaining community trust.
The swift insurance payment was made possible through the county’s financial safeguards, which included comprehensive coverage for employee dishonesty. While the case against Morales is ongoing in the criminal courts, county leaders emphasize that the repaid funds will support public services and operations that were impacted by the theft.
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