Kootenai County doctor's felony charges dismissed

COEUR d'ALENE — Dr. Stanley Toelle, the local gastroenterologist accused of funding then-wife Loren Toelle's six-state narcotics ring, signed a plea agreement April 3 dismissing multiple felony counts of money laundering.

As part of the deal, the 61-year-old pleaded guilty to two counts of misdemeanor tax fraud, charges derived from not reporting Loren's Las Vegas stripper earnings from 2011-2013. The plea agreement states Toelle listed Loren as a “housewife” on the couple’s tax returns while knowing she was collecting business income.

Throughout the course of the investigation, Stanley Toelle inisted he wasn't aware of his wife’s drug empire. The two divorced in November, the same month she pleaded guilty to conspiracy to distribute a controlled substance and conspiracy to launder money.

"The truth shall set the doctor free," said Nic Vieth, Stanley Toelle's attorney. "There was enough evidence to the U.S. Attorney and acting U.S. Attorney in Boise who had (the plea agreement) approved. To reduce charges of this magnitude tells you how much evidence there was in his favor.

"Now he gets to go back to his practice. Go back to living his life."

In February 2016, federal prosecutors filed charges against Stanley Toelle listing nine deposits and withdrawals into his Coeur d'Alene bank account from Montana and North Dakota.

The feds looked to seize $1.3 million in the doctor's assets as part of a civil forfeiture, but Toelle agreed to pay $150,0000 to buy out the government's interest in the property the former couple owned.

Loren Toelle, 52, moved drugs such as oxycodone, heroin and methamphetamine around Nevada, California, Idaho, Washington, Montana and North Dakota from 2009 to 2016. She faces a maximum of 40 years in prison on the drug charge and 20 years on the money laundering charge.

Of the 11 defendants connected to the conspiracy, Stanley Toelle is the only one who didn't enter a guilty plea in connection to the narcotics ring. He was hit with the tax offenses in February.

According to court documents, Loren took an FBI polygraph test that confirmed she was telling the truth when stating Stanley was oblivious of her using his bank accounts for the drug ring.

Among the court documents was a notice of alibi, in which the defense states the case's witnesses are expected to say Stanley Toelle was never present for any of the drug deals.

Vieth said the polygraph was a crucial piece of evidence, as was the testimony of the other defendants in the case.

"All of the co-defendants, and even the government's witnesses, became witnesses for us," Vieth said. "Even with some of the strong-arming by the federal agents, they all stood by their story (Stanley) had nothing to do with (the drug ring) and is a good man."

For the misdemeanor tax offenses, Toelle faces a fine up to $10,000 and a maximum of one year of imprisonment.