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Arizona Man Detained in Nancy Guthrie Case Sues Sheriff's Office for $3.25M, Says He Was Never Cleared

Carlos Palazuelos was held for seven to eight hours, released without charges, and — according to his attorney — left to face public harassment while the sheriff's office stayed silent.
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MOMarcus Oyelaran
Policy · Voltage
Monday, August 3, 2026

A detention, no charges, and a $3.25 million claim

Six months into the investigation into the disappearance of Nancy Guthrie — the 84-year-old mother of Today show co-host Savannah Guthrie — no arrests have been made and no suspect has been publicly identified. What has happened: a notice of claim against the Pima County Sheriff's Department totaling $3.25 million, filed on behalf of three people caught up in a February search warrant operation.

Carlos Palazuelos is seeking $2.5 million. Daniel Maddox is seeking $500,000. Homeowner Josefina Maddox is seeking $250,000 for alleged property damage during the execution of a search warrant at the family's Rio Rico home. The Feb. 10 operation, tied to the Guthrie investigation, resulted in Palazuelos being detained for seven to eight hours before being released without charges.

The notice of claim alleges deputies drew weapons on Palazuelos, confiscated his cellphone and driver's license, handcuffed Daniel Maddox and held him under armed guard outside the home, and damaged Josefina Maddox's property. It further contends that investigators obtained the warrant through a sealed application relying on 'false or baseless evidence' and that deputies lacked probable cause.

The filing also takes direct aim at Sheriff Chris Nanos, alleging he and the department publicly portrayed Palazuelos as a suspect — announcing a detention 'in connection with the Guthrie investigation' and, according to the claim, describing him to reporters as a 'person of interest.' Authorities have since refused to retract those statements or publicly clear his name, the claim says.

Attorney Jesse Showalter framed the ask plainly: 'Sheriff Nanos and the Pima County Sheriff's Office come forward and say, 'Carlos, this was a mistake. Carlos is not a person of interest. He is not an investigative lead. We messed up.'' Showalter added that the family is 'living day-to-day, living in fear.'

Palazuelos previously told ABC15 that members of the public have followed and photographed his family since his detention. 'People taking pictures of us or following us,' he said. 'This morning it was there too, so it's been kind of scary for me and for my wife, my kids and everybody.' The claim describes his detention as leaving him feeling 'as though he himself had been kidnapped.'

The Pima County Sheriff's Office said it 'does not comment on pending litigation.' Under Arizona law, the county has 60 days to accept or reject the settlement demand before the claimants can file suit.

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Here's the thing. The state's power to detain someone, search a home, and brief reporters on a 'person of interest' is enormous — and the accountability for getting it wrong is often close to zero. A $3.25 million claim is the legal system's blunt instrument for correcting that imbalance. Whether Pima County settles, litigates, or simply runs out the 60-day clock, the cost of a botched operation — to a family's safety, reputation, and daily life — is already real. The sheriff's 'no comment' is not an answer. It is a posture.

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