Newton Falls woman federally indicted on theft of $375,000 from health care plans

Staff report

CLEVELAND

A 26-count federal indictment was filed Tuesday accusing a Newton Falls woman of stealing more than $375,000 from health care plans she administered and using the money to pay for personal and business expenses.

Pamela S. Priddy, 58, is charged with 22 counts of bank fraud and four counts of theft from a health benefit program.

In 2010, Priddy started Health Plan Administrators LLC, an Austintown company that was a third-party administrator of health care plan benefits. Priddy was president, founder and majority owner.

HPA had several clients that were self-funded health-care benefit plans for their employees. These companies paid HPA a fee to administer their benefit plans. Priddy knew HPA was required by law to establish individual segregated bank accounts for each client company, according to the indictment.

But from at least Jan. 1, 2012, to Nov. 13, 2013, Priddy diverted and used about $377,092 of HPA clients’ money in connection with a health care program as general assets of HPA and for Priddy’s personal benefit, the government said.

The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall after an investigation by U.S. Department of Labor, Office of Inspector General and Employee Benefits Security Administration and the Federal Bureau of Investigation.