Lori Isenberg, charged with embezzling $500K taken in to custody


COEUR D'ALENE, Idaho -Lori Isenberg, the former north Idaho housing coalition president accused of embezzling thousands of dollars and who was the last person to see her husband Larry alive is now behind bars.

Isenberg skipped her last court appearance as police investigated her husband's death on Lake Coeur d'Alene as a murder.

Isenberg was booked around 10:45 Wednesday night. She has been on the lam for the last two months as the subject of a $500,000 arrest warrant, after having missed previous court appearances on grand theft charges.

Isenberg was once the respected president of the North Idaho Housing Coalition, but that all came crashing down in late February. The day news broke that she'd been fired from the organization over the alleged misuse of a half-million dollars in funds was the same day Lori reported her husband, Larry, missing in the waters of Lake Coeur d’Alene.

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According to Lori's first-hand account of Larry's death,  Lori claimed that Larry fell into the lake from their boat during a morning cruise while trying to fix some engine trouble.

But search warrants filed in Spokane County Superior Court say the autopsy results showed no signs Larry suffered a stroke and no evidence of drowning.

Instead, the autopsy turned up lethal levels - 7 times the normal prescribed amount - of the same antihistamine found in Benadryl in Larry's system.

While Lori has not been charged in Larry's death, at least two of her adult daughters from her first marriage are being investigated in this case. Detectives allege at least some of the missing money from Lori's workplace was given to her children.

Court documents say the couple's children described their marriage as perfect, but a family friend, later told detectives that "the only tension he knew of between Larry and Lori was her constant enabling and giving of money to help out her daughters."

Lori Isenberg could be brought before a judge on the fugitive warrant as early as Thursday afternoon.

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