COEUR d’ALENE — The reason it took a local housing nonprofit about a month to inform police after suspecting embezzlement was the belief that confirmation of its suspicions were needed first, a board member said.

Kerri Thoreson, North Idaho Housing Coalition president, said an internal forensic audit was launched about a month ago upon the nonprofit parting ways with former director Lori Isenberg.

The nonprofit presented allegations to Coeur d’Alene Police last Wednesday. Police served a search warrant at Isenberg’s Cougar Gulch home on Friday and arrested her on Monday on 40 counts of forgery and one count of grand theft.

"Until we could confirm — by immediately launching an audit — that a crime had been committed, we could not report a crime," Thoreson wrote in an email to The Press, adding that the initial internal audit findings were the basis for the police department to begin its investigation.

When contacted two weeks ago, after The Press discovered Isenberg and the coalition had severed ties in January, Thoreson said an internal audit had been launched and one of the possibilities that could result from it was a police investigation.

But Coeur d’Alene Police Chief Lee White said Tuesday that law enforcement prefers to know about such situations as soon as possible — even if someone is only suspected of a crime.

"We encourage people to contact law enforcement at the moment they suspect an illegal act has occurred," he said. "Because of the delay, we can’t say if any evidence was lost or not."

White said that even if specific suspicions go unfounded by detectives, investigations can sometimes uncover other crimes if police are aware of situations early on.

White said Isenberg, who led the Coeur d’Alene-based nonprofit for almost a decade, is accused of embezzling nearly $500,000.

Thoreson declined to comment on the board’s reaction to Isenberg’s arrest or provide background on how the case unfolded before Isenberg and the coalition severed ties.

"We cannot comment on or react to an ongoing investigation as not to jeopardize legal proceedings," Thoreson wrote.

Board members said Isenberg was placed on administrative leave before ties were permanently severed.

On behalf of the coalition’s board, Thoreson referred other questions to the police department.

"We are letting the Coeur d'Alene Police Department's investigation and legal process proceed while the audit is being completed," she wrote.

The investigation continues, so White said it’s possible additional charges may be filed later.

Those with any information are urged to contact Coeur d’Alene Police at 208-769-2296 or policetips@cdaid.org.

Meanwhile, the Kootenai County Sheriff’s Office continues to search, as weather and schedules permit, on Lake Coeur d’Alene for Lori’s husband, Larry Isenberg, who was reported missing by Lori on Feb. 13.

Lori told responders that Larry fell into the lake while attempting to repair a problem with one of the motors on the boat they were in. The search has been in the area of Powderhorn Bay and East Point on the southeast portion of the lake.

The missing report came just a few hours after The Press reported the housing coalition and Lori severed ties. Lori Isenberg said she searched for Larry for about two hours before contacting authorities.

Larry, a forest-industry veteran, is a former project manager for Fire Smart, a program offered by Kootenai County’s Office of Emergency Management that helps property owners protect their homes and businesses from wildfire.