Former Housing Director Sentenced to Probation

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SALT LAKE CITY (AP) -- A federal judge has ordered the former director of a housing program to serve one day in jail and perform 10 hours of community service for having committed health insurance fraud.

Rosemary Kappes divorced her husband in 1996, but kept her former husband on her employer-paid health insurance for another eight years.

U.S. District Judge Dee Benson sentenced Kappes yesterday, but said she'd committed a very small crime.

The 62-year-old Kappes was director of the Housing Authority of Salt Lake City.

A federal grand jury indicted the Layton woman on 22 counts of health care fraud and 13 counts of mail fraud. She also faced one count of theft from a program receiving federal funds.

Prosecutors contend that Regence Blue Cross Blue Shield of Utah paid $14,000 of claims submitted by health care providers who treated Ray Kappes.

Since an audit uncovered the insurance fraud, Rosemary Kappes has repaid the company $28,000.

Information from: The Salt Lake Tribune

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

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