CORUNNA — The woman accused of stealing more than $200,000 from the Steam Railroading Institute recently waived a preliminary exam in 66th District Court and was bound over to face felony charges in 35th Circuit Court.

Mary Lombardo, 40, of Morrice, pleaded not guilty in early May to a felony charge of embezzlement of $100,000 or more.

Police say she stole from the nonprofit for various personal expenses over a two-year span, according to court documents.

According to an SRI press release, Lombardo allegedly stole the funds by “directing (them) through multiple PayPal accounts to her personal bank accounts, arranging sole responsibility for multiple credit cards and falsifying financial reports to cover up the discrepancies.”

Lombardo is also accused of using the funds to purchase “gas, groceries, and many personal items for herself and her family in Michigan as well as other states.”

The SRI said in the press release that the board became aware of the discrepancies in July 2018, and an audit was conducted by Andrews Hooper and Pavlik. The SRI said it directed Lombardo to cooperate with the audit and provide documentation; however, she then allegedly “wiped clean SRI’s accounting system” and “did her best to erase any paper trails, then resigned before (executive director Kim) Springsdorf returned from vacation.”

When the alleged scheme was discovered, Lombardo quit her position and apparently left town. She turned her self in after police issued a statement saying they were looking for her.

Bond was set Monday at $30,000, which she posted.

On May 21, Lombardo waived a preliminary exam in the case. A settlement conference was schecduled for 1:15 p.m. July 15 in circuit court.

According to court documents, defense attorney Doug Corwin filed a request for a forensic criminal responsibility examination and filed notice of an insanity defense.

Judge Terrance Dignan granted to request for an evaluation.

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