West Virginia Official Alleged to Have Authorized $34 Million in Unverified COVID-19 Payments

A federal grand jury has indicted a state health office manager in West Virginia for approving more than $34 million in coronavirus pandemic relief payments to a private firm without verifying that the vendor provided the goods and services it was contracted to deliver. The indictment, filed on Tuesday in federal court in Charleston, charges Timothy Priddy with making false statements to federal agents and in grand jury testimony about the payments.

According to Governor Jim Justice, Priddy has been suspended from his job pending a decision by the courts. Priddy held various managerial positions at the state Bureau for Public Health’s Center for Threat Preparedness and was promoted to deputy director in March 2021 and director in January 2022.

Prosecutors have launched a federal investigation to determine whether one or more vendors overbilled or received improper payments from federal funds disbursed through the Department of Health and Human Resources. The vendor in question reported results of around 49,000 COVID-19 tests but submitted invoices reflecting the cost of about 518,000 test kits. Despite this significant discrepancy, Priddy allegedly certified at least 13 invoices totaling approximately $34 million.

The indictment does not name the vendor but states that the company is from out of state and provided test kits, laboratory analysis, and community testing events throughout West Virginia. The state’s contract with the company for diagnostic testing services ended in October 2022, according to DHHR spokesperson Jessica Holstein.

The vendor was required to provide nasal swab diagnostic testing for COVID-19 and upload test results immediately, as per the contract. The tests were intended for specific DHHR programs and initiatives, including residential youth facilities, hospice agencies, pharmacies, and emergency medical services workers who needed frequent testing.

The indictment emphasizes that vendors contracted by the state were obligated to report test results so that officials would have accurate information on the number of active COVID-19 infections and areas experiencing outbreaks.

West Virginia has recorded nearly 8,250 deaths from COVID-19 since March 2020, according to the health agency’s dashboard.