Zacchary E. Weber, president of Health Economics Partners LLC, was arrested after a State Police forensic audit found $810,695.55 allegedly moved without authorization from benefit accounts at three New York school districts. Losses were reported as $377,757.75 (Sodus), $251,119.86 (Bemus Point) and $181,817.94 (North Rose-Wolcott). Civil suits by some districts preceded the criminal charges; the investigation is ongoing and the charges remain allegations until proven in court.
Rochester Benefits Administrator Arrested After Forensic Audit Finds $810,695 Allegedly Transferred From Three School Districts
Image Credit: Chautauqua County Sheriff's Office / New York State Police.
A Rochester businessman who ran a third-party benefits firm has been arrested after investigators say more than $810,000 was moved without authorization from medical and dental benefit accounts belonging to three New York school districts.
Allegations and Audit Findings
Authorities identified the defendant as Zacchary E. Weber, 49, president and CEO of Health Economics Partners LLC (HEP), which administered medical and dental benefit accounts for schools and other organizations. New York State Police investigators say funds belonging to the districts were transferred into accounts controlled by HEP without proper authorization.
A forensic audit by the State Police Financial Crimes Unit placed the combined alleged losses at $810,695.55, itemized as:
- Sodus Central School District: $377,757.75
- Bemus Point Central School District: $251,119.86
- North Rose-Wolcott Central School District: $181,817.94
Civil Cases and Arrest
The inquiry began in September 2025 when Sodus Central School District reported concerns about funds administered by HEP. Civil litigation by Sodus and North Rose-Wolcott over benefit funds preceded the criminal case; both districts reportedly obtained judgments earlier in 2026, including a North Rose-Wolcott judgment totaling $243,319.30 (damages, interest and fees).
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Police say Weber was arrested on September 2, 2026, following an investigation that began roughly a year earlier. He faces three counts of second-degree grand larceny: two counts in Wayne County (in connection with Sodus and North Rose-Wolcott) and one count in Chautauqua County (related to Bemus Point in the town of Ellery). The criminal charges are allegations; Weber is presumed innocent until proven guilty in court.
How Districts Were Affected
Court filings show Sodus transferred $230,000 from its self-insured dental claims fund into an HEP account in February 2024. By 2025, district employees reported dental claims denied for nonpayment and checks issued by HEP were bouncing. As a result, Sodus began paying some dental claims directly—expenses officials say should have been covered by the fund managed by HEP.
State Comptroller Guidance
The New York State Office of the State Comptroller has long warned school districts against granting third-party administrators direct, unrestricted access to district bank accounts. The Comptroller recommends:
- Requiring district authorization for electronic transfers rather than giving administrators direct access;
- Transferring funds only for claims that have been independently audited and approved;
- Requiring independent documentation and audits before reimbursements are made; and
- Reconciling administrator reports with bank activity, claim payments and actual balances—especially when checks bounce or unexpected transfers appear.
Next Steps
The investigation remains ongoing. The civil cases are separate from the criminal prosecution and do not determine criminal guilt. Districts and other organizations that use third-party administrators may review their controls in light of these events to reduce the risk of unauthorized transfers.
Image Credit: Shutterstock
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