A Benefits Administrator Managed Health Funds for Three School Districts. Police Say $810,695 Was Transferred Without Permission

A Rochester businessman is facing three felony grand larceny charges after investigators say more than $810,000 was transferred without authorization from medical and dental benefit accounts belonging to three New York school districts.

Zacchary E. Weber, 49, is president and CEO of Health Economics Partners LLC, a company that administered medical and dental benefit accounts for schools and other organizations. Police say money belonging to the districts was transferred into accounts controlled by HEP without authorization.

A forensic audit placed the combined losses at $810,695.55. Sodus Central School District lost $377,757.75, Bemus Point Central School District lost $251,119.86 and North Rose-Wolcott Central School District lost $181,817.94.

Weber was arrested on September 2 after an investigation that began about a year earlier. The Post-Journal reported that the criminal case follows civil litigation involving HEP and benefit funds belonging to some of the same school districts.

A Forensic Audit Found Losses Across Three Districts

The investigation began in September 2025 after Sodus Central School District reported concerns about money being administered by Health Economics Partners.

New York State Police investigators subsequently examined accounts connected to Sodus and North Rose-Wolcott in Wayne County and Bemus Point in Chautauqua County. Police say money was transferred without authorization from district accounts into accounts controlled by HEP.

The State Police Financial Crimes Unit conducted a forensic audit and calculated the three alleged losses separately: $377,757.75 for Sodus, $181,817.94 for North Rose-Wolcott and $251,119.86 for Bemus Point.

Bounced Dental Claims Had Already Raised Questions

Civil court records described financial problems involving Sodus before Weber’s arrest. Sodus business administrator Steven Moore said the district transferred $230,000 from its self-insured dental claims fund into an HEP account in February 2024.

By 2025, district employees were seeing dental claims denied for nonpayment, while checks issued by HEP for claims were bouncing, according to court records reviewed by The Post-Journal. Those problems prompted school officials to investigate whether money expected to remain available for employee dental claims was still there.

The district eventually began paying dental claims itself that officials said should have been covered through the fund administered by HEP.

Two Districts Had Already Won Civil Judgments

Sodus and North Rose-Wolcott pursued separate civil cases against Health Economics Partners before the new criminal charges were announced.

The Post-Journal reported that both districts obtained judgments earlier in 2026. North Rose-Wolcott’s judgment totaled $243,319.30, including damages, interest and attorney fees.

Bemus Point was the only one of the three districts that had not filed its own state Supreme Court case against HEP when the September criminal charges were reported. The civil cases remain separate from the criminal prosecution and do not establish Weber’s guilt on the new charges.

Weber Faces Three Felony Grand Larceny Charges

State Police charged Weber with two counts of second degree grand larceny in Wayne County in connection with the Sodus and North Rose-Wolcott losses.

After his Wayne County arraignment, he was taken to Chautauqua County and charged with another count of second degree grand larceny in the town of Ellery in connection with Bemus Point.

The investigation remains ongoing. The three criminal charges are accusations and have not been proven in court. Weber is presumed innocent unless convicted.

What Schools Can Check When a Third Party Manages Benefit Funds

New York’s Office of the State Comptroller has warned school districts about giving third-party benefit administrators direct access to district bank accounts. In one school audit, the Comptroller recommended ending that access and requiring another district official to approve electronic transfers.

For self-funded healthcare benefits, the Comptroller says districts may use qualified third-party administrators to audit, approve and pay benefit claims, but money can be transferred to the administrator based on the amount of claims audited and approved for payment rather than giving the administrator unrestricted access to district funds.

Independent review also applies when the district reimburses an administrator for healthcare claims. In a separate school district audit, the Comptroller recommended ensuring claims are independently audited and properly supported before payment.

District officials can also compare administrator reports with bank activity, claim payments and actual account balances. Bounced benefit checks, unpaid employee claims or unexpected transfers should trigger a review of the underlying bank records rather than relying only on information supplied by the outside administrator.