A federal grand jury returned an indictment Wednesday against the former director of the Housing Authority of Salt Lake City on multiple counts of mail fraud, health care fraud and one count of theft.

Rosemary Kappes, 62, of Layton, is accused of allowing her former husband to continue to use health care benefits offered through her employer for a number of years after their divorce, according to court documents. Authorities say that under the policy a divorce would automatically terminate an ex-spouse's coverage, which they say Kappes failed to disclose to the housing authority and her insurance company. Kappes has since reconciled with her husband, and they now live together.

A recipient of the 2006 Utah Apartment Association Lifetime Achievement Award, Kappes began working as the director of the Utah Housing Authority of Salt Lake City in 1987. Intending to retire at the end of this year— Kappes was placed on administrative leave in May and ultimately resigned last month from her post following a federal probe into her hiring ethics and issues mentioned in the current indictment against her.

Under a deal struck Monday, Kappes will receive $53,000 in retirement benefits from her former employer, settling a dispute for payment of her unused sick and vacation days.

Court documents say she faces 13 counts of mail fraud, each count carrying a maximum sentence of 20 years in prison and a $250,000 fine; 22 counts of health care fraud, each count carrying a maximum of 10 years in prison and a $250,000 fine; and one count of theft from a program from which she received federal funds carrying a maximum sentence of 10 years and a $250,000 fine. Kappes will be issued a summons to appear in federal court for an arraignment regarding the charges in the indictment.

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