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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Alleged drug ring headed by Coeur d’Alene doctor’s wife nets four more guilty pleas

From staff reports

Four people pleaded guilty to drug and money-laundering charges in a sweeping federal case that also included the arrest of a Coeur d’Alene physician and his wife, a Las Vegas stripperwho authorities say headed a multi-state drug ring.

Jessica N. Frederick, 26, of Spokane; Sean L. Jackson, 27, of Las Vegas, and Steven W. Jackson, 30, of Las Vegas all pleaded guilty to drug charges on Tuesday, while Kristin R. Wilson, 28, of Riverside, California, pleaded guilty to the same charges Wednesday. In addition, Wilson and Sean Jackson have pleaded guilty to money-laundering charges.

All four admitted to being part of a drug trafficking ring that sold and transported heroin and oxycodone pills in Nevada, Washington, Idaho, Montana and North Dakota, federal prosecutors said in a news release.

Frederick and Steven Jackson face up to 20 years in prison and fine of up to $1 million. Wilson and Sean Jackson face up to 40 years in prison and a fine of up to $4 million. Sentencing is set for March 7 and 8 in Coeur d’Alene, the release said.

All told, 11 defendants have been indicted in the case and seven have pleaded guilty.

The federal indictment names both Loren Toelle and her husband, Dr. Stanley Toelle, as well as three of her children, her brother and several family friends. The operation netted at least $1.3 million in proceeds since 2009, prosecutors allege.

Stanley Toelle, a gastroenterologist who worked for Kootenai Health, is charged with conspiracy to launder money, which carries a maximum sentence of 20 years in prison and a $500,000 fine. The hospital terminated his employment after his arrest in February. Loren Toelle, his wife of 10 years, is charged with conspiracy to distribute controlled substances, distribution of oxycodone and conspiracy to launder money. She could receive up to 40 years in prison if convicted.

Loren Toelle has filed a signed statement in federal court saying her husband knew nothing of the criminal enterprise.