MADISON, Neb. – Former North Fork Area Transit director Jeffrey Stewart made his first appearance in Madison County Court on Tuesday, standing for his arraignment on a felony theft charge.

Stewart, who is accused of embezzling approximately $750,000 from NFAT, was arrested late last week after turning himself in at the border of Texas and Mexico. Stewart had last been seen in Norfolk in early December. He had been staying in Mexico prior to his arrest.

Bond for Stewart was set at 10% of $500,000. He asked Judge Michael Long to reduce his bond due to lack of funds. When asked how much money he had in his account, Stewart said he had $0.

Stewart is accused of embezzling money for flights, purchases at casinos, meals at area restaurants, home goods and more, all for personal use, according to investigators.

North Fork Area Transit was unable to make payroll on Dec. 16, shortly after Stewart submitted a request to the board for medical leave. The board then sought $88,155.59 from the Norfolk City Council to ensure employees were paid.

The service was forced to cease operations on Jan. 6 due to a lack of funds. Operations resumed in the spring after a successful fundraising campaign brought in $1 million -- $500,000 from the community and a matching $500,000 donation from the Johnny Carson Foundation.

During that time, Stewart was in Mexico. Stewart claimed he was dealing with “mental health issues”. Authorities picked up Stewart in Texas and brought him back for his arraignment this last week.

“I am confident I will be liberated by the end of this,” Stewart said. 

Stewart also claimed that he was unaware that police were searching for him. Madison County officials say they’ve been searching for him since December. Around the same time of his departure. 

Stewart said in a phone call to News Channel Nebraska last week that the funds that had been reported missing from North Fork Area Transit had to do with longer wait times for reimbursement from the Nebraska Department of Transportation.

During his arraignment, Stewart requested to have his bond reduced so he could afford a lawyer. Stewart claimed that by turning himself in, he was told his bond would be reduced. Madison County officials rebutted and said it wasn’t true. They said it may help but not eliminate it completely. When asked how he would come up with the money, he said he would “borrow from his family members”.

“All I am asking for is the opportunity to defend myself and the opportunity to take care of my children,” Stewart said. 

Stewart was appointed an attorney, as he awaits further trial.