Toelle gets one month for tax fraud

COEUR d’ALENE — A local gastroenterologist, previously accused of funding his now ex-wife’s drug ring, will spend one month in federal prison for submitting false income tax returns.

Dr. Stanley Toelle, 61, previously admitted in court to two counts of misdemeanor tax fraud as part of a plea agreement with the U.S. Attorney’s Office. As part of the plea agreement, Toelle admitted the joint tax returns he filed with then wife Loren were false because they did not report the income Loren was making from selling illegal narcotics in as many as six states.

“Toelle maintains that he did not know about Loren Toelle’s drug organization and that it was the source of her income,” a news release from the U.S. Attorney’s Office for the District of Idaho states.

Loren, now divorced from Toelle, pleaded guilty to conspiracy to distribute controlled substances and conspiracy to launder money. She was sentenced to 212 months in prison.

“Loren Toelle admitted to being the organizer and leader of her drug trafficking and money laundering organization, which involved her children and friends,” the release states. “This group sold oxycodone, heroin and methamphetamine in Idaho, Washington, Montana and North Dakota.”

The release adds the multi-state narcotics ring sold an average of $1 million worth of illegal drugs each year from 2012 to 2014.

Following his prison term, Dr. Toelle will spend one year on probation. Toelle was also ordered to pay $47,597.31 in restitution for back taxes on revenue, and a $5,000 fine.

In a separate, civil case, Toelle agreed to pay $150,000 to resolve forfeiture claims on two homes and other assets, which otherwise could have been handed over to authorities.