In what is apparently the first reported instance of fraud involving Health Savings Accounts (HSAs) has been reported by Inside Consumer-Directed Healthcare.

The newsletter reported that 1Point, a Third Party Administrator (TPA) has been hit with such a problem.  According to the newsletter, Barry Stokes, 1Point’s President, has been in jail in Nashville, TN since October, accused of using depositors’ monies to amongst other things, purchase Japanese Print Block Art.

Calls to 1Point were not returned and the company is seeking to sort out the problems.

Most HSA custodians are insured against theft by government agencies such as the FDIC.

However, a quick survey by Information Strategies, Inc., indicates that this is not the case for most TPAs.

Steve Davis, editor of Inside Consumer-Directed Healthcare, a newsletter serving the CDH sector, said the company was working to return depositors money.

Attempts to reach Stokes were unavailing.

1Point was amongst the earliest providers of HSA account custodial services and was known for paying high interest rates to attract depositors.