– By F. Scott Faulkner
SANTA BARBARA, CA — March 2, 2026
A Santa Barbara couple has been arrested and now face 68 felony counts pursuant to a years-
long financial scheme that drained more than $2 million from a local woman unlucky enough to
have been their neighbor.
According to Santa Barbara County District Sr. Deputy District Attorney, between October 2020
and May 2021, Byron Richard Tarnutzer, 63, and Vonna Tarnutzer, 70, persuaded Mystica Fleury to
invest $1.75 million “through a promissory note tied to a fraudulent investment pitch.”
Prosecutors contend the note was crafted to make future collection difficult and that Rick
Tarnutzer never intended to repay it.
“Tarnutzer knew Fleury had received millions in a divorce settlement and positioned himself as
her primary adviser during those proceedings.” Evidence indicates that he reviewed her legal
paperwork and drafted a proposed settlement email, “building trust before soliciting the
investment.”
The couple also convinced Fleury to purchase a home next to theirs in Santa Barbara and pay
them to remodel it without informing her that they lacked a general contractor license. They
allegedly unauthorized contractor fees and failed to pay subcontractors, despite receiving funds
from Fleury for the work.
At some point in their relationship, the couple transferred Fleury’s funds into Vonna Tarnutzer’s
business account to create the false appearance of income while applying for a mortgage.
An arrest warrant was issued and served upon the Tranutzer’s on February 26. They
were taken into custody and transported to Santa Barbara County Jail and charged with fraud,
grand theft, money laundering, forgery, filing false tax returns, diversion of construction funds
and mortgage fraud. They remain in custody with their bail set at $2,000,000 each.
