I get where you're coming from David and although we learn that MLC is not an excuse for poor decisions, I can certainly imagine how you don't want to send your X to jail because she "wasn't quite right in the head"... and how that would affect the kids...
First, and I say this with complete respect... how is your X still able to gain access to money and credit from your mom or yourself? How were these things not protected...?
Second, the not a lawyer part, is...
I strongly recommend seeking legal council on this, but I wonder if there is a way to file a civil torte against your W for the amount she "borrowed" (plus interest and inconvenience fee)... without it going to criminal court...
I'm sure for the reason of compassion, you and your mom might be prepared to "fix" the access problem, eat the loss, and just let it go... yet, there's a strong case for putting the pressure on your W...
Think of it this way... while it is not your place to teach life lessons to your W... if she begins to feel it is that easy to "steal"... what happens if she starts to feel invincible and starts embezzling from work or stealing from the corner store... etc...
I'd put some effort into "tough love"... after that... it's up to her...
