In addition to what you have stated, other primary factors will be how much money was alleged to have been embezzled (felony or misdemeanor ($200)), and what was the relationship between your wife and the alleged victim. Mental health, etc will obviously be a sympathtic strategy as oppossed to the alleged crime being due to greed. The better play would have been to involve the Commonwealth's Attorney before fully cooperating with the police and making full restitution. Remember, the prosecutor controls the prosecution, not the police. In the end, cooperation and restitution may have been the best strategy, but after putting a plea agreement in place with the Commonwealth's Attorney.