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RED LAKE COUNTY, Minn. — A Great Falls, Montana, woman is being held on a $5 million bond for allegedly stealing $573,818.75 from the Red Lake County Cooperative, Inc., through wire fraud.

Stephanie Michele Nipp, 56, is charged with felony theft by swindle and receiving stolen property. The swindling charge, which is more severe, carries a maximum sentence of 20 years.

The Minnesota Bureau of Criminal Apprehension opened an investigation in October into the suspected fraud, according to a probable cause statement filed in the case. The general manager of the co-op told investigators she had received an email from a construction assistant for Gales Design & Consulting — a company the co-op hired to manage a project — in July.

The email included instructions for payment to Sackett-Waconia which, according to its website, is a manufacturer of technology and equipment for the fertilizer industry. The company was hired by Gales Design to assist with the task of building and providing materials for the Red Lake Co-op's new agronomy facility.

The message came from an existing email thread between the general manager and construction assistant. Once the funds were sent as requested, the assistant acknowledged that they were received.

One month after this exchange, the co-op's general manager received a call from the construction assistant requesting payment status on the Sackett-Waconia invoice. The manager said she already paid the invoice, per the assistant's emailed instructions.

The assistant said she had not sent any email instructions. The unauthorized transfer was then reported to the authorities for investigation, according to the statement.

It was determined that the wiring instructions and address provided were fraudulent, and associated with a Bravera Bank account in Great Falls, Montana.

Brian Gales, co-owner of Gales Design, told law enforcement his internal IT staff had identified a telephone number not associated with anyone at the business. They would have been able to authenticate log-ins to the system, follow email conversations and mark them as junk, according to the statement.

Records from Bravera Bank were reviewed, and investigators determined the account that received the unauthorized wire transfer was opened on July 12 — by Nipp, the statement said.

On that date, Nipp allegedly opened a business checking account and checking/money market account. While doing so, she allegedly presented a Montana Secretary of State document of Incorporation for Sackett-Waconia.

The date of incorporation was listed as July 11, with Nipp listed as incorporator, the statement said.

Reviewing the business checking account records, there was one deposit from the Red Lake County Co-op, followed by withdrawals through checks written to various individuals for various amounts across a week-long span. There were also two Apple.com transactions, as well as numerous cash withdrawals and transfers from the business account to the money market account.

The account was closed in August, with a closing balance of $130.

Surveillance footage inside the bank showed Nipp entering, holding documents and engaging with a bank representative. The representative later told law enforcement that Nipp explained she was in fertilizers and starting a business to work for herself.

Records from the Montana Secretary of State indicated that Nipp had incorporated Sackett-Waconia in Montana in July; the business name was misspelled in the filings, the statement said.

Dan Rondeau, president of Sackett-Waconia, told law enforcement that the company was not incorporated in Montana, nor did it have an employee named Nipp, nor was anyone authorized to incorporate in Montana in their name. He also said he did not recognize the person shown in the bank's surveillance footage.

Charges were filed Jan. 6, and a warrant for Nipp's arrest was issued the same day. She was booked into the Northwest Regional Corrections Center on Jan. 17.

Nipp's first court appearance was held Tuesday morning, Jan. 21, during which her bond was set at $5 million cash or surety. If she bonds out, she will only be permitted to be in Montana, Minnesota or North Dakota. She will be required to surrender her passport and submit to random searches. She is prohibited from possessing any weapons.

Nipp was granted a public defender to represent her in this case. Her next court hearing, a Rule 8 initial appearance, is scheduled for 1 p.m. Jan. 29.