A 61-year-old woman stole more than $3.75 million from her Rochester-area employer while she was being financially exploited in what she thought was an online relationship with a man, according to charges.

Sharon A. Schmalzriedt of Wabasha, Minn., was charged in Wabasha County District Court last week with felony theft in connection with the nearly 3½-year period when large sums of money were siphoned from the company where she worked as a bookkeeper.

Schmalzriedt also was charged with another felony, financial exploitation of a vulnerable adult, stemming from allegations she stole more than $17,000 and gave it to people involved in the scam.

Schmalzriedt was arrested Friday, posted $25,000 bond Tuesday and is due back in court on Jan 3. A message was left with her Wednesday seeking her response to the allegations. Court records do not list an attorney for her.

The name of the company was not disclosed in the criminal complaint. However, the Star Tribune confirmed with company officer Stacy Kreidermacher that the business involved was National Chemicals Inc.

The complaint said Schmalzriedt was fired in March for what it called "gross negligence."

According to the criminal complaint:

Police in Lewiston, where National Chemicals is headquartered, contacted the state Bureau of Criminal Apprehension (BCA) about the suspected embezzlement by Schmalzriedt as she worked from her home.

The company said Schmalzriedt was in charge of payroll, paying vendors and maintaining financial records. The owner hired an outside firm to look into "unexpected losses and inconsistencies" in financial statements.

The firm made copies of company records before asking Schmalzriedt to provide financial ledgers within two weeks. A review of her work found that she deleted multiple payments from company ledgers, prompting her firing.

A BCA agent discovered payments to businesses and individuals who had no association with the company. From October 2019 until Schmalzriedt was fired, the company's losses topped $3.75 million.

Schmalzriedt told the agent she was having marital problems and began an online relationship in October 2019 with someone she knew as Erik Lockwood, who claimed he was owed $7 million for work he had done in Dubai, United Arab Emirates.

Schmalzriedt said Lockwood told her that he needed U.S. currency to collect what he was owed and that he would repay her.

Schmalzriedt first sent her own money, then company funds to Lockwood and accounts associated with him. Lockwood and someone purporting to be his attorney gave her repeated excuses for the need to keep receiving more money from her.