Lori Isenberg is a former nonprofit executive from Coeur d’Alene, Idaho, who gained national attention after being convicted of poisoning her husband, Larry Isenberg, and embezzling funds from the North Idaho Housing Coalition.
Lori Barnes married her high school sweetheart, Steven Barnes, with whom she had six daughters. After their divorce in the mid-1990s, she married Larry Isenberg in 2004. Together, they had a blended family of eight children and were active in their community. Lori worked as the executive director of the North Idaho Housing Coalition, a nonprofit organization focused on providing affordable housing.
Between 2015 and 2018, Lori embezzled over $500,000 from the nonprofit by creating fake companies and invoices, funneling the money into accounts she controlled. She involved four of her daughters in the scheme, who later pleaded guilty to various charges related to the fraud.
On February 13, 2018, Lori and Larry took a boat trip on Lake Coeur d’Alene. Lori reported that Larry fell overboard and drowned. However, an autopsy revealed that Larry died from a lethal dose of diphenhydramine (Benadryl), a common over-the-counter antihistamine. Investigators determined that Lori had poisoned him to prevent him from discovering her embezzlement.
In 2019, Lori pleaded guilty to wire fraud and theft for embezzling funds from the nonprofit. She was sentenced to five years in federal prison and ordered to pay restitution. In 2021, she pleaded guilty to second-degree murder for her husband’s death, acknowledging that she was responsible for his death. She was sentenced to 30 years to life in prison and is currently incarcerated at the Pocatello Women’s Correctional Center, with eligibility for parole in 2050.
Early Life and Family Background
Birth and Upbringing
Laurcene “Lori” Barnes was born in 1953 in Idaho. Raised in a modest household, her early years were marked by financial instability, with her family occasionally squatting in empty farmhouses. Despite these challenges, Lori pursued education and eventually became involved in nonprofit work, focusing on community development and housing initiatives.
First Marriage and Children
At the age of 19, Lori married her high school sweetheart, Steven Barnes. The couple had six daughters together. Their marriage, however, ended in divorce in 1996. Following the separation, Lori relocated to Coeur d’Alene, Idaho, to raise her daughters as a single mother.
Education and Career
Academic Pursuits
Details about Lori’s formal education are limited, but her career trajectory suggests a background in nonprofit management and community development. Her work with the North Idaho Housing Coalition indicated a commitment to social causes and affordable housing initiatives.
Professional Life
Lori’s professional journey led her to the North Idaho Housing Coalition, where she served as the executive director. In this capacity, she was responsible for overseeing programs aimed at providing affordable housing solutions to low-income families in the region. Her role positioned her as a respected figure in the community, trusted with significant financial responsibilities.
Marriage to Larry Isenberg
Meeting and Courtship
In the late 1980s, Lori met Larry Isenberg, a timber executive and father of two, when she was hired as his secretary. Their professional relationship soon blossomed into a personal one. Both Lori and Larry had experienced previous marriages and, after their respective divorces, they married in 2004.
Family Life
Together, Lori and Larry blended their families, raising eight children—six from Lori’s previous marriage and two from Larry’s. They also had 15 grandchildren and one great-grandchild. The couple built a home in Cougar Gulch, Idaho, where they enjoyed a comfortable life, with Larry retired and Lori continuing her work in the nonprofit sector.
Embezzlement Scheme
Fraudulent Activities
Between 2015 and 2018, Lori orchestrated an elaborate scheme to embezzle over $500,000 from the North Idaho Housing Coalition. She created fake companies and submitted fraudulent invoices for services that were never rendered. These invoices were often submitted in the names of companies she set up in her daughters’ names. The funds were then diverted into accounts she controlled.
Involvement of Family Members
Four of Lori’s daughters were implicated in the scheme. They pleaded guilty to various charges related to the fraud, with some receiving probation and being ordered to pay restitution. The involvement of her family members added a layer of complexity and tragedy to the case, as it highlighted the extent to which Lori manipulated those closest to her.
Husband’s Death
The Incident
On February 13, 2018, Lori and Larry embarked on a boat trip on Lake Coeur d’Alene. Lori later reported that Larry fell overboard and drowned. However, an autopsy revealed that Larry died from a lethal dose of diphenhydramine (Benadryl), a common over-the-counter antihistamine. Investigators determined that Lori had poisoned him to prevent him from discovering her embezzlement.
Investigation and Arrest
Following Larry’s death, authorities began investigating the circumstances surrounding his demise. The discovery of the high levels of diphenhydramine in his system led to suspicions of foul play. Lori was arrested and charged with second-degree murder.
Legal Proceedings and Sentencing
Charges and Plea
In 2019, Lori pleaded guilty to wire fraud and theft for embezzling funds from the nonprofit. She was sentenced to five years in federal prison and ordered to pay restitution. In 2021, she pleaded guilty to second-degree murder for her husband’s death, acknowledging that she was responsible for his death. She was sentenced to 30 years to life in prison and is currently incarcerated at the Pocatello Women’s Correctional Center, with eligibility for parole in 2050.
Personal Life
Public Perception
Prior to the revelations of her criminal activities, Lori was viewed as a dedicated professional and a loving mother and grandmother. Her involvement in the community and her work with the North Idaho Housing Coalition contributed to her positive public image. However, the subsequent events have significantly altered how she is perceived by the public and her family.
Current Status
Lori remains incarcerated at the Pocatello Women’s Correctional Center. She has expressed remorse for her actions, particularly regarding her husband’s death, but maintains that the poisoning was an accident resulting from her own suicide attempt. Her case continues to be a subject of public interest and media coverage.
Conclusion
Lori Isenberg’s story is a tragic example of how personal greed and deceit can lead to devastating consequences. Her actions not only resulted in the loss of her husband’s life but also shattered the trust and relationships within her family. As she serves her sentence, the community reflects on the importance of integrity and the far-reaching impact of betrayal.
FAQs
What was Lori Isenberg’s role at the North Idaho Housing Coalition?
Lori served as the executive director, overseeing programs aimed at providing affordable housing solutions to low-income families.
How did Lori Isenberg embezzle funds from the nonprofit?
She created fake companies and submitted fraudulent invoices for services that were never rendered, diverting the funds into accounts she controlled.
What led to the suspicion of foul play in Larry Isenberg’s death?
An autopsy revealed lethal levels of diphenhydramine in Larry’s system, leading investigators to suspect poisoning.
What was Lori Isenberg’s defense during her trial?
Lori claimed that she had laced a drink with Benadryl in a suicide attempt and that Larry accidentally consumed it.
How did Lori’s daughters become involved in the embezzlement scheme?
Lori set up fake companies in her daughters’ names and funneled embezzled funds through them.
What was the outcome of the legal proceedings for Lori’s daughters?
Four of Lori’s daughters pleaded guilty to various charges related to the fraud and received sentences ranging from probation to home detention.
Where is Lori Isenberg currently incarcerated?
She is serving her sentence at the Pocatello Women’s Correctional Center in Idaho.
Is Lori Isenberg eligible for parole?
She is eligible for parole after serving 30 years of her sentence.
