How old are her kids? Is the other parent around, responsible enough to take care of them if she's in jail?
Why would she so confide in this other person and you had no clue of these government cheques she's been cashing?
Anyhow, if it weren't for the kids, she'd already be rotting in jail. Your 5k is probably gone - but what you can do however is report the fraud to your bank, they may reimburse you if they didn't check who signed the cheques & what not.
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Patrizia
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