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Additional Isenberg daughters plead guilty to wire fraud, theft

by Staff
| January 30, 2019 5:42 PM

Two more daughters of Lori Isenberg were in federal court Wednesday where they pleaded guilty to charges stemming from their participation in a wire fraud and federal program theft scheme with their mother.

Isenberg, 65, the former director of the North Idaho Housing Coalition, pleaded guilty Tuesday to three counts of wire fraud and one count of program theft.

Her daughters, Tracy Tesch, 34, of Rathdrum, and April Barnes, 42 of Coeur d’Alene, each pleaded guilty Wednesday to conspiracy to commit program theft.

Isenberg admitted, according to court records, to stealing more than $570,000 from the coalition, an organization that receives funds from the U.S. Department of Housing and Urban Development administered through the Idaho Housing and Finance Association.

“Isenberg...engaged in a scheme with her four daughters to submit false invoices and expenses to the Coalition for payment. These invoices were often submitted in the names of companies she set up in her daughters’ names. Isenberg provided her daughters with some of the money she took,” said a news release from the U.S. Attorney’s office.

Tesch admitted to receiving approximately $15,300 from the scheme and April Barnes admitted to receiving about $11,500.

Two other daughters, Amber Hosking, 40, of Spirit Lake, and Jessica Barnes, 32, of Spokane Valley, were sentenced Tuesday for conspiracy to commit federal program fraud. Hosking admitted receiving $16,500 from the scheme, and Jessica Barnes admitted receiving $15,500. Both women admitted they received money for work they did not do.

Senior U.S. District Judge Edward J. Lodge sentenced Hosking and Jessica Barnes each to three years’ probation and 100 hours of community service. Lodge also ordered Hosking and Jessica Barnes to pay $16,500 and $15,500 in restitution, respectively.

Sentencing for April Barnes and Tesch is set for May 1 before Lodge at the federal courthouse in Coeur d’Alene.

Their mother will be sentenced April 30.