Waldholtz Is Indicted on Fraud Charges

WASHINGTON — Joseph Waldholtz, estranged husband of Rep. Enid Greene (R-Utah), was charged with bank fraud Thursday in what prosecutors called a check-kiting scheme involving almost $3 million.

The 27-count indictment accused Waldholtz, former campaign manager for his wife, of writing numerous worthless checks in early 1995 to make it appear there were substantial deposits into two checking accounts belonging to the couple.

The accounts actually were in the red, and Waldholtz ended up spending $209,000 the couple did not have, the indictment said.

Greene is not accused of participating in the scheme alleged in the indictment, prosecutors said. The indictment did not allege any improprieties involving her campaign finances.

But U.S. Atty. Eric H. Holder Jr.’s office said the indictment is part of a broader investigation related to the couple’s finances.

Greene said Thursday her husband had “criminally victimized a long line of people who trusted him,” and she called the indictment “the first step toward justice in that regard.”

“I equally, and firmly, believe it is the first step toward showing I will be cleared. It shows I was telling the truth on the banking transactions, and I believe it will show the same for the campaign finance transactions,” she said. “I am innocent of any wrongdoing.”

Greene, a onetime rising star in the Republican Party, announced in March she will not seek a second term and said she wants to clear her name and “establish the truth” about her finances.

If convicted of defrauding the banks, Joseph Waldholtz would face up to 30 years in prison and a $1-million fine. Prosecutors asked that he be forced to forfeit $209,000.