Joseph P. Waldholtz, the estranged husband and former campaign treasurer of Rep. Enid Greene (R-Utah), was indicted here yesterday 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.

In announcing the indictment, 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 the name of her husband.

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

Greene said yesterday 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." Yesterday'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, a corporate lawyer by profession, announced she had allowed all those matters to be handled by her husband.

After examining her campaign and personal financial affairs, Greene said that Joseph Waldholtz was a fraud and the campaign money had come not from his gift to her but from her father, who secretly had lent "slightly over $4 million" to her husband without telling her.

Waldholtz has been in a Pittsburgh jail since March 23 because of failure to obey an order requiring a full accounting for money he apparently had taken from the estate of his grandmother.

According to yesterday's indictment, Waldholtz began depositing checks into a joint checking account at the Congressional Federal Credit Union here shortly after Greene was sworn in as a member of Congress in January 1995. The checks were drawn on a joint account in a Salt Lake City bank. By depositing checks simultaneously in each bank, the prosecutor said, Waldholtz eventually appeared to have more than $752,000 in both banks when the two accounts really had a negative balance of more than $197,000.

For example, in late February 1995, Waldholtz was making daily cross-deposits of up to $250,000, Holder said. By March 2, 1995, when the scheme was discovered, Waldholtz allegedly had deposited worthless checks totaling $1.4 million in the Washington account and $1.5 million in the Utah account. Altogether the scheme cost the two banks more than $200,000, an amount that eventually was covered by Greene's father.

Waldholtz is scheduled to be arraigned within 10 days on the federal counts. If convicted, he could face a maximum sentence of 30 years in prison and a fine of $1 million, Holder said.

CAPTION: Joseph Waldholtz could be sentenced to 30 years in prison and fined $1 million if convicted.