It is the embezzlement case that four years later just won’t go away.
An appeals court says Mariposa County Superior Court Judge Michael Fagalde erred when he rejected a mental health diversion for Carrie Lee Bonn, the former treasurer for Mariposa County Friends of the Library, a nonprofit that financially supports the county library system.
In its June 10 opinion, the three judge panel of the 5th Appellate District in Fresno said Bonn’s embezzlement conviction should be vacated and the case returned to Mariposa County Superior Court for reconsideration of a mental health diversion.
The California Attorney General has 30 days to appeal the case to the California Supreme Court, but that is considered unlikely.
The Bonn case has dragged on for more than four years, much to the consternation of those who feel Bonn has manipulated the legal system.
What is not in dispute is that during a 14-month period — from March 2021 through May 2022 — Bonn embezzled $102,086 from the nonprofit Friends group to subsidize her gambling addiction. a dozen counts of felony embezzlement.
During the court proceedings, Judge Fagalde twice rejected a mental health diversion for Bonn — in April 2024 and January 2025 — despite reports from two psychologists who said she had long suffered from anxiety and depression and more recently from bi-polar disorder.
In January 2025, after Judge Fagalde denied a mental health diversion for a second time, Bonn reached a plea deal with prosecutors and pleaded guilty to 12 counts of embezzlement.
In February 2025, Judge Fagalde sentenced Bonn to two years of formal probation, 250 hours of community service and ordered $102,086 in restitution to Mariposa County Friends of the Library.
Bonn has since finished her community service, but still owes $99,086 in restitution, said Ryan Oliphant, head of the Mariposa County Probation Department.
Mariposa County District Attorney Walter Wall told the Mariposa Gazette in an email, “We accept the ruling of the appellate court as in keeping with the mental health diversion law in its current state.”
“This ruling underscores the need for revisions to the law of mental health diversion in California,” Wall added.
Reached by text message, Bonn declined to comment.
Mental health diversion
California allows a judge some discretion in moving a criminal case to mental health diversion, but the appeals court ruled that Judge Fagalde failed to fully articulate his reasoning for rejecting that path and that he didn’t adequately consider Bonn’s more recent diagnosis of bi-polar disorder.
In rejecting a mental health diversion, Fagalde noted it was not a single crime, but a series of thefts over a 14 month period during which she was under mental health care.
The defense had argued that bi-polar disorder was a new diagnosis for Bonn and the crimes were committed during a manic phase.
Fagalde seemed to reject that idea.
“I have never seen a manic stage that lasted 14 months,” said Fagalde, according to a court transcript.
“And so, it’s the court’s belief that defendant was under constant care, did not raise any of the issues that were involved in this case with her providers and certainly could have. And so that is one of my grounds for denying,” Fagalde said in court.
Fagalde also noted that the DA was opposed to a mental health diversion, as were the victims in the case.
5th Appellate opinion
But the 5th Appellate judges said Fagalde failed to address whether Bonn was eligible or suitable for mental health diversion under state law.
“Instead, the court said only that it was exercising its discretion to deny mental health diversion,” the appellate opinion said.
As for Fagalde’s statement from the bench that he had never seen a manic stage that lasted 14 months, the appellate court was not likewise persuaded.
“In our view, the court’s experience is not evidence, let alone clear and convincing evidence, that would overcome the presumption that Bonn’s diagnosis was a contributing factor,” the opinion said.
The opinion argues that Bonn’s manic episode did not last 14 months, like Fagalde suggested, but rather came in three to four week spans when “she felt out of control, euphoric and hyperactive, going without sleep for days or getting one hour of sleep.”
In her manic state, Bonn apparently believed she would be able to replace the money she embezzled with future winnings.
The 5th Appellate opinion said Fagalde conflated Bonn’s previous treatment for anxiety and depression with the more recent diagnosis of bipolar disorder.
Bonn claimed she had been in therapy “off and on” from 2010 through 2021 for depression and anxiety, and had been on medication.
But she was not diagnosed with bipolar disorder until May 25, 2022, just six days before she engaged in her final act of embezzlement and after law enforcement had begun investigating the case.
After she was diagnosed, she was placed on a specific medication for bipolar disorder.
The appellate judges noted that Bonn is compliant with treatment, medication, psychotherapy and is attending Gamblers Anonymous meetings.
Bonn’s successful treatment demonstrates she was a good candidate for mental health diversion, the appellate court argues.
“In sum, the trial court abused its discretion be exercising it in a manner inconsistent with the principles of purposes of the mental health diversion statute,” the appellate court concludes.
Back to the beginning
If there is no appeal the California Supreme Court, the 5th Appellate Court will issue what is know as a “remittitur,” which sends the case back to Mariposa County Superior Court and vacates the conviction.
It would essentially return the criminal case to a much earlier starting point.
But the appellate decision includes an intriguing and important footnote: Victim restitution is possible under a mental health diversion — within certain limitations.
It means repayment of at least some of the stolen funds my be possible without a criminal felony conviction.
Reaction from ‘Friends’
Gina Thatcher, president of Mariposa County Friends of the Library, said they are reviewing the situation and evaluating options.
“Ultimately, we hope justice will be served,” Thatcher said in an email.
Bonn’s embezzlement continues to be felt by the nonprofit group which contributes funds to the library mainly through its book sales.
Jon Wurl, the former president of the group during the period of embezzlement, told the Mariposa Gazette he was disappointed the case will be coming back to the courthouse.
During county budget talks last week, Wurl and several members of the group asked the Mariposa County Board of Supervisors for an extra $10,000 to $15,000 to be budgeted for the library because the nonprofit had to pull back on its own donations to the library to protect its reserves.
Board member’s assured the group the library will get the funds it needs, and praised head librarian Matt Johnson.
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