May 3, 1996 in Nation/World

Grand Jury Indicts Waldholtz In $3 Million Check Scheme

Washington Post
 

Joseph P. Waldholtz, the estranged husband and former campaign treasurer of Rep. Enid Greene, R-Utah, was indicted here Thursday by a federal grand jury on 27 counts of bank fraud in a scheme that prosecutors said generated $3 million in worthless checks over two months last year.

U.S. Attorney Eric H. Holder Jr., said the congresswoman “is not alleged to have participated in the scheme.” Holder added that the federal investigation is continuing into other matters related to both Joseph Waldholtz and Greene, who has filed for divorce and has stopped using her husband’s name.

Still being investigated are possible violations of campaign spending laws in Greene’s 1992 and 1994 congressional elections and alleged false statements contained in her financial disclosure statements in 1994 and 1995.

Greene said Thursday in a telephone interview that “we’ve been asking the Justice Department to move forward and … we’re pleased and relieved that the process has begun.” Thursday’s indictment, she said, “proves he (Waldholtz) is the one who did these things.”

As for the continuing federal inquiry, Greene added, “Clearly they are not done with the campaign fund investigation … (and) I’m equally confident that he will be indicted for a host of campaign fund violations and I will be cleared just as (was) the case in this one.”

Waldholtz, 33, moved to Utah in 1992 to help run Greene’s unsuccessful campaign, portraying himself as a millionaire.

When the two were married in August 1993, she said he gave her stocks and property worth more than $5 million as a wedding gift.

When Greene ran again in 1994, with Waldholtz as her campaign treasurer, she reported spending more than $2 million of her own money. When personal financial irregularities surfaced in 1995, Waldholtz fled and Greene announced she had allowed all those matters to be handled by her husband.


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