N. Idaho embezzler now charged with murdering husband

KOOTENAI CO., Idaho — A North Idaho woman serving time for stealing money from a non-profit now faces a murder charge for the death of her husband.

Lori Isenberg was being held in a federal facility in Washington prior to be arrested for murder and transfered to the Kootenai County Jail on Monday evening. She was previously sentenced to serve five years for stealing $579,000 from the North Idaho Housing Coalition while she was the executive director.

Lori Isenberg's new mugshot

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The Kootenai County Sheriff’s Office said a grand jury met earlier this year and found probable cause to charge her in her husband’s death.

Larry Isenberg was found dead in Lake Coeur d’Alene in March 2018. Lori reported him missing in February, telling authorities he had fallen into the water while they were boating. She said her husband had not been feeling well and that she thought he had a medical episode that caused him to fall into the water. She also told investigators his face looked “awful” and “gray” before he fell.

RELATED: Court docs: Isenberg autopsy shows ‘no evidence of drowning’

Larry’s autopsy showed no visible signs of stroke, nor evidence of drowning. A report from the Spokane County Medical Examiner showed Larry’s body had lethal levels of diphenhydramine – or Benadryl – in his system.

Larry’s death investigation remains an open case. Lori is set to appear in court Tuesday and has had bond set at $2 million.