PITTSBURGH — Mayor Bill Peduto says the city would start paying health care insurance claims for 3,700 employees next year under a self-insurance program intended to cut expenses.

The director of the Office of Management and Budget Sam Ashbaugh says the city will retain its existing insurance providers, Highmark and HealthAmerica, and plans will not be changed. But rather than paying premiums, the city will pay claims directly.

The city's cost would increase from about $53 million to $57 million in 2016 and employee co-pay would be phased in over three years.

The move is intended to comply with a mandate to have workers pay 20 percent of the total cost of their health care.

PITTSBURGH — Federal prosecutors say a man from the eastern European country of Moldova ran an e-mail phishing scheme that enabled him and others to steal banking information from U.S. companies, including a Western Pennsylvania drilling firm that lost more than $3.5 million as a result.Andrey Ghinkul, 30, was indicted under seal in August, but the charges were announced late Tuesday.The FBI says U.S. victims of the “Bugat” malware that infected computers of those who opened the phishing e-mails lost about $10 million.Penneco Oil Company of Delmont lost $3.5 million in two transfers, one to Russia and the other to Belarus, in August and September, 2012.

PITTSBURGH — A union and workers are complaining about unhealthy working conditions in an unlikely place: the offices of a Western Pennsylvania county health department.The Service Employees International Union Local 668 says the Allegheny County Health Department facilities have problems with mold and asbestos.The health department has issued a statement saying its aware of and “working proactively to address decades of deferred maintenance” on the county-owned buildings.