Former Isanti County Sheriff's Foundation treasurer charged with two counts of theft

The former treasurer of the Isanti County Sheriff's Foundation was charged with two felony-level counts of theft stemming from her time in the position on Tuesday.

According to the criminal complaint, Kim Nordenstrom allegedly misappropriated a $100,000 grant for personal use.

Her first court appearance is scheduled for 10 a.m. on Nov. 26.

The criminal complaint states that the Chisago County Sheriff's Office began an investigation on June 11 after a request made by Isanti County chief deputy John Gillquist, due to a complaint filed by Ryan Seiberlich, the president of the Isanti County Sheriff's Foundation and wife of sheriff Wayne Seiberlich.

Ryan Seiberlich reported suspicious fraudulent activity on the foundation's account.

The foundation is a 501(c)(3) nonprofit, and is a separate entity from the Isanti County Sheriff's Office.

The complaint states that on June 6, Ryan Seiberlich and foundation secretary Tonya Orbeck were told about the activity at the Cambridge office of MinnCo Credit Union. Two accounts were apparently created without their knowledge or agreement.

They were also made aware that a $100,000 deposit from a grant was deposited into the foundation's account without their knowledge.

During the same meeting, Ryan Seiberlich and Orbeck were also made aware that numerous checks were personally made out to treasurer Kim Nordenstrom from the foundation account.

Checks were also written out to other entities Ryan Seiberlich and Orbeck weren't familiar with, and without approval of the foundation's board.

In an interview with Chisago County investigator Andrew Mahowald on June 13, Ryan Seiberlich said she and Orbeck thought the foundation only had a primary savings account and a business checking account, and that a second business checking account appeared to have been created and active without their knowledge.

Ryan Seiberlich also said she believed the amount of money under control of the foundation was more than a few thousand dollars, but less than $10,000.

She also told Mahowald that it was her understanding that only Nordenstrom had access to a debit card and checkbook in her role as treasurer since the foundation's inception.

According to the complaint, it was confirmed that only Nordenstrom had banking access for the Isanti County Sheriff's Foundation.

Mahowald reviewed the financial documentation, and noticed there were "many transactions involving the Isanti County Sheriff's Foundation in a short amount of time involving tens of thousands of dollars in transactions."

The foundation's savings account went from carrying $5 month after month to $100,000; only $25 went to the known business checking account on March 31, with the remaining balance going to the new business checking account.

Orbeck and Ryan Seiberlich advised the investigator that there was no discussion as a board to pursue funding of that size or scale.

Mahowald executed a search warrant for Nordenstrom's banking records at the credit union on June 20. According to the complaint, as it relates to Nordenstrom's personal accounts, a basic checking account had a beginning balance of $34.08 and ending balance of $82.06 in March, and reflected 22 deposits made in the amount of $96,144.79, and 46 withdrawals in the amount of $96,007.28.

The investigator noted a deposit on March 11 from the Isanti County Sheriff's Foundation's Project 612 account, for $45,000, and a check written out personally to Nordenstrom on March 12 that was cashed for $5,000.

Mahowald also flagged additional withdrawals paid out in subsequent days to vendors related to machinery and farming, which appeared to be personal purchases for and by Nordenstrom's benefit.

He also investigated the initial $100,000 check which landed in the foundation's account on Feb. 28, and determined it was issued from J.P. Morgan Charitable Giving Fund, dated Feb. 21.

On March 11, a transfer was initiated in the amount of $99,975 to the newly created business checking account under the foundation, and on March 11, 17, and 18, checks from that account were written out personally to Nordenstrom in the amounts of $45,000, $30,000, and $20,000.

Mahowald acquired requested documentation about the grant reward on July 11, and according to the complaint, the banking information made it appear that Nordenstrom violated the award language.

The grant purpose was stated as support for Project 612, solicited by MarShaan Johnson. The foundation was allegedly acting as a fiscal agent for the program, which helps at-risk inner city youth and their families in North Minneapolis.

Mahowald met with Nordenstrom on July 17, and she acknowledged a new checking account appearing in March, as well as a $100,000 deposit.

Nordenstrom said the funds were to go to Project 612, and that she was doing the financial part of the program. She said the program's budget was about $97,000, and that the Isanti County Sheriff's Foundation would benefit the remaining $3,000 for an administrative fee.

She also said that Johnson was a college friend of her daughter's, and that he was struggling to get funding for his at-risk youth sports program. She allegedly mentioned the idea to the foundation's board in February, and stated "they just didn't totally get it."

Mahowald pointed out that he didn't understand the nexus to Isanti County, and added: "It seems beyond your scope of your mission for the foundation."

Nordenstrom eventually agreed that $95,000 of the award went to herself, and stated that she already repaid about $10,000.

She later said that around $15,000 went to several individuals, and that she moved the money to her personal account to get a better interest rate return. Mahowald pointed out that the money did not sit long enough in the account to gain interest, because it appeared that Nordenstrom spent it.

The complaint reads: "In questioning Kimberly Nordenstrom about whether or not MarShaan Johnson played any role in this case other than being another victim to her taking money, she stated he did not. Kimberly Nordenstrom took money that landed in the Isanti County Sheriff's Foundation banking account, which the funding was secured by using the mission and vision of MarShaan Johnson's Project 612, then utilized those funds to pay off her personal debt and purchase farming implement equipment for her own property, with transactions and admissions/acknowledgments in her statement supporting this."

When she was confronted with this information, Nordenstrom advised Mahowald that she was planning to repay all of the money once she mortgaged her home and would be in a position to repay it.

Mahowald explained that he believed the case had two separate victims: Project 612 and the Isanti County Sheriff's Foundation.

The investigator met with Johnson on July 30 in Ham Lake, and he confirmed Nordenstrom was his personal tie to the foundation, and that he reached out to her to be his fiscal agent for the funding.

Johnson told Mahowald that he started receiving funding from Nordenstrom and the foundation in April, and that he is the recipient of several checks in the denomination of around $2,500 each, provided monthly.

His partner, Terez van Pelt, ran into some issues getting his pay and invoices fulfilled, and had a check bounce, which contributed to the findings of the entire incident amid concerns with MinnCo Credit Union personnel seeing checks bouncing from the Isanti County Sheriff's Foundation accounts.

A statement from the Isanti County Sheriff's Foundation reads as follows:

"We are profoundly disappointed and shocked by the recent discovery that the Isanti County Sheriff's Foundation has been victimized by the misuse of funds. According to charging documents, these alleged actions were carried out in secret by our former treasurer — a person we deeply trusted and considered a friend — without the knowledge or approval of the Foundation’s board.

This betrayal of trust has left us devastated, both personally and on behalf of the Foundation and the community it serves. Our priority is full transparency and accountability. We are cooperating fully with authorities and have already begun implementing safeguards to ensure this never happens again.

We remain dedicated to upholding the integrity of the Isanti County Sheriff's Foundation and its mission, and we are committed to taking all necessary steps to restore the trust that has been shaken."