Jeffrey Stewart

JEFFREY STEWART appears for an arraignment in Madison County District Court on Thursday.

MADISON — The former general manager of North Fork Area Transit maintained his innocence Thursday as he faces two felony charges relating to his alleged misuse of public funds ahead of his tentative trial in July.

Jeffrey Stewart, 32, pleaded not guilty to a new charge of unauthorized use of a financial transaction device — $5,000 or more — after District Court Judge James Kube found probable cause last week that Stewart committed the second crime with which the Madison County Attorney’s Office charged him with in March.

A probable cause finding does not mean Stewart is guilty, only that there is enough evidence for the state to continue prosecuting Stewart on the additional felony count. It’s a Class 2A felony, which doubles the possible maximum punishment for the former NFAT manager to 40 years in prison.

Both of Stewart’s not guilty pleas — the first was for a felony theft of more than $5,000 charge in October — were expected as he has consistently denied wrongdoing in the months since he began appearing in court, saying he wants to prove his innocence in light of allegations that he misused at least $740,000 of the transit organization’s dollars in 2022.

Stewart’s trial — initially anticipated for Monday, May 13 — also was postponed to Monday, July 8, although it could be pushed further back based on dialogue at the arraignment. Justin Kalemkiarian, Stewart’s attorney, said he needed more time to prepare and had scheduling conflicts as a result of other clients he’s representing.

Deputy county attorney Matthew Kiernan said discovery was ongoing and that Kalemkiarian had not yet been provided with about 1,400 jail calls the county had recently received.

Stewart, who’s housed in the Madison County Jail, is scheduled to appear for a pre-trial conference hearing on Monday, May 20.

In an arrest affidavit filed by the Madison County Attorney’s Office on Dec. 16, 2022, a sheriff’s officer investigator wrote that sheriff Todd Volk had received information from Madison County Attorney Joe Smith that Stewart was making purchases on transit credit cards issued for business purchases only.

Traci Jeffrey, board president of North Fork Area Transit at the time, had made Smith aware of the alleged expenditures.

Investigators met with Jeffrey at the transit’s headquarters in Norfolk. During the meeting, according to the affidavit, Jeffrey said she had reviewed credit card statements and bank records that showed purchases were made by Stewart for casinos, motels and nonbusiness airplane tickets.

Jeffrey advised that she had copies of the credit card statements that she obtained from Elkhorn Valley Bank showing the purported purchases. Jeffrey also told investigators that Stewart had the authority to write checks and make transfers on a U.S. Bank account.

The credit card alleged to have been used by Stewart was frozen after the transit system board became aware of unauthorized purchases being made.

Investigators said they reviewed statements for a Visa credit card that had been issued to Stewart on April 1. Repeated purchases at casinos were made from April to Dec. 11, 2022, according to the affidavit.

The U.S. Bank checking account shows multiple payments to the credit card were allegedly made by Stewart. Unauthorized purchases totaled more than $740,000, investigators have said.

A judge signed a warrant for Stewart’s arrest in December 2022, after which Stewart spent nearly seven months in Mexico. Last summer, Stewart negotiated his surrender with the sheriff’s office, agreeing to turn himself in to U.S. Border Patrol officials on July 14 in Texas.

In court hearings, Stewart has said he turned himself in to prove his innocence.

Others appeared on the following charges:

Possession of cocaine, refusal of a chemical test — second offense

— Rosa M. Aguilar, 31, 913 S. Fourth St., pleaded guilty to each charge.

Driving under the influence (.15 grams or more) — fifth offense, driving during revocation, driving without an ignition interlock device

— Shannon M. Boyd, 34, 407 S. 10th St., Apt. 3, had her arraignment continued.

Possession of cocaine (10-27 grams) with intent to deliver, possession of marijuana with intent to deliver, possession of psilocybin, possession of money used to facilitate a drug crime, tampering with evidence, child abuse

— Tahashaye T. Canty-Neely, 34, 826 S. Seventh St.,, had his arraignment continued.

Driving under the influence (.15 grams or more) — fourth offense

— Seth L. Davies, 35, Columbus, pleaded not guilty.

Possession of oxycodone with intent to deliver, possession of heroin

— Dawson J. Finkral, 25, 813 N. Boxelder Circle, had his arraignment continued to 10:30 a.m. Friday after testing positive for THC.

Second degree assault — two counts, use of a deadly weapon to commit a felony — two counts

— Eriq D. Gildea, 21, 300 S. 49th St., pleaded not guilty to each charge.

Possession of marijuana with intent to deliver, possession of cocaine, possession of money used to facilitate a drug crime, intentional child abuse not resulting in injury

— Katie M. Hahlbeck, 26, Ewing, pleaded not guilty to each charge.

Probation violation on the convictions of attempted terroristic threats, attempted assault by strangulation

— Jeremy J. Heiderman, 37, Madison County Jail, admitted to violating his probation.

Postrelease supervision violation on the conviction of operating a motor vehicle to avoid arrest

— Charles E. Loughman, 33, Lincoln, denied violating his postrelease supervision.

Theft by shoplifting ($0-$500) — third offense

— Keith A. Newman, 27, 407 N. 13th St., Apt. 15, pleaded not guilty.

Protection order violation — second offense

— Dylan E. Osborne, 28, Madison County Jail, pleaded guilty.

Driving under the influence (refusal of test) — fourth offense, refusal of a chemical test — fourth offense

— Neptali Ramirez, 22, 1008 Pierce St., pleaded not guilty to each charge.

Possession of marijuana with intent to deliver, possession of psilocybin, possession of ecstasy, possession of money used to facilitate a drug crime, intentional child abuse not resulting in injury

— Kwamel L. Ross, 34, 826 S. Seventh St., pleaded not guilty to each charge.

Protection order violation — second offense, theft by unlawful taking ($5,000 or more)

— Justin A. Tidball, 37, Dakota County Jail, pleaded not guilty to each charge.

Possession of methamphetamine, failure to appear

— Marlene G. Villalobos, 40, Madison County Jail, pleaded not guilty to both charges.

Issuing a bad check ($5,000 or more)

— Matthew N. White, 38, Madison County Jail, pleaded not guilty.

Protection order violation — second offense

— Abraham Zarate, 41, Madison County Jail, pleaded not guilty.

Postrelease supervision violation on the conviction of attempted terroristic threats

— Calvin C. Wright, 36, Newman Grove, failed to appear and had a bench warrant issued for his arrest.

Terroristic threats, use of deadly weapon to commit a felony, possession of a deadly weapon by a prohibited person

— Craig Zautke, 53, Madison County Jail, pleaded not guilty to each charge.

* * *

Editor’s note: Daily News reporter Austin Svehla contributed to this report.

In other news

For over half of a century, there has been one constant at track and field and cross country meets around Northeast Nebraska every school year.