Rosemary Kappes, who resigned from the housing program in June over the probe into the case, is charged with 22 counts of health care fraud and 13 counts of mail fraud. In addition, she faces one count of theft concerning a program receiving federal funds because her employer was paying the insurance premiums.

Kappes, a 62-year-old Layton resident, finalized her divorce in November 1996, which automatically terminated her former husband's coverage.

However, she never notified the housing authority or insurance carrier of the divorce and left her ex-spouse on the policy until August 2004, the indictment alleges. During those eight years, Regence Blue Cross Blue Shield of Utah continued to pay claims submitted by the former husband's health-care providers.

Kappes and her lawyer, Max Wheeler, could not be reached for comment Wednesday. However, Wheeler in May called the investigation into the insurance status "a bunch of nonsense."

He said his client and her husband reconciled after living apart for only six months and Kappes' failure to take her spouse off the policy was a technical issue.

The maximum penalty for mail fraud is 20 years in prison and a $250,000 fine. The other charges carry penalties of 10 years behind bars and a $250,000 fine.

Prosecutors said Kappes will be issued a summons to appear in federal court for arraignment.

pmanson@sltrib.com