Wabasha woman sentenced for embezzling over $3 million

by Mike Bunge

WABASHA, Minn. – A southeast Minnesota woman is sentenced for embezzling over $3 million from her employer.

Sharon Ann Schmalzriedt, 62 of Wabasha, was charged with felony theft and financial exploitation of a vulnerable adult.  She pleaded guilty to the theft charge and the other was dismissed as part of a plea deal.

The Minnesota Bureau of Criminal Apprehension says Schmalzriedt began an online affair in October 2019 with an individual identified as “Erik Lockwood.”  Investigators say “Lockwood” told Schmalzriedt he was owed $7 million for work “Lockwood” did in Dubai but needed to borrow United States currency in order to get that money.

According to court documents, Schmalzriedt began sending “Lockwood” her own money, then began stealing money for him from the Lewiston-based business Schmalzriedt worked for as a bookkeeper.  Agents say Schmalzriedt also stole money from a vulnerable adult she was financially responsible for and sent it to “Lockwood.”

Investigators say Schmalzriedt embezzled $3,751,337.06 from the business and $17,150 from the vulnerable adult.

Schmalzriedt has now been sentenced to five years of supervised probation and 1,000 hours of community work service.  She has also been ordered to repay the money stolen from the business.

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Wabasha woman sentenced for embezzling over $3 million