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Former Salt Lake City Housing Authority Director Faces Federal Charges

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SALT LAKE CITY (AP) -- The former Salt Lake City Housing Authority director is facing federal charges of fraud and theft.

Rosemary Kappes of Layton was indicted yesterday by a federal grand jury for allegedly keeping her ex-husband on her insurance policy for eight years after their divorce.

Kappes is facing 13 counts of mail fraud, 22 counts of health care fraud and one count of theft from a program receiving federal funds.

Kappes ran the Housing Authority of Salt Lake City which is funded by the U.S. Department of Housing and Urban Development.

She resigned from her post last month amid investigations by federal prosecutors, HUD and the local board of directors.

Kappes worked for the housing authority for 17 years and had planned to retire this year.

(Copyright 2007 by The Associated Press. All Rights Reserved.)

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