COEUR D’ALENE, Idaho (AP) - A northern Idaho woman is denying that she stole more than $500,000 from a nonprofit that helps low- to moderate-income people buy homes.
Sixty-four-year-old Lori Isenberg pleaded not guilty Wednesday in U.S. District Court in Coeur d’Alene to three counts of wire fraud and one count of theft from a federal program.
Isenberg was fired as the director of nonprofit North Idaho Housing Coalition on Jan. 24.
She was charged in February with felony grand theft in Idaho’s 1st District Court and pleaded not guilty, posting a $75,000 bond. Isenberg at about that time also signed her homes over to her sister.
Isenberg failed to appear for her May 25 arraignment, and a judge issued a $500,000 arrest warrant.
In February, at about the same time the possible embezzlement became known, Lori Isenberg reported that her husband, Larry Isenberg, fell from their boat on Lake Coeur d’Alene. His body was found in the lake in March. Officials say he had lethal levels of Benadryl in his body.
Lori Isenberg reappeared in July and was taken into custody. During her absence, police expanded their investigation into Larry Isenberg’s death to include family members, but no charges have been filed.
Because the missing money at the housing coalition belonged to the federal government, state charges against Lori Isenberg were dropped, and she was charged in federal court.
Federal prosecutors on Wednesday requested that Isenberg remain jailed until her trial. U.S. District Judge Ronald E. Bush set a detention hearing for Dec. 11. Isenberg’s trial is also scheduled to begin in December.
In a related matter, Isenberg’s daughters each pleaded guilty Tuesday to taking money that was supposed to go to the housing coalition.
Amber Annette Hosking, 39, and Jessica Fay Barnes, 36, each pleaded guilty in federal court to conspiracy to commit a federal program theft.
Federal authorities say Hosking and Barnes each received about $16,000 for work they claimed to have performed for the housing coalition but didn’t do.
Barnes and Hosking each face a $250,000 fine and up to five years in prison.
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