Lawrence Ackerman isn’t going to spend too much time behind bars, but his business career deservedly is over. On January 15, Ackerman, founder of two fake health insurance brokerages, was sentenced in Trenton, N.J. federal court to six months in prison and six months of home confinement for his role in a $6.6 million fraud scheme. He also was ordered to pay $1 million in restitution to the welfare fund of United Auto Workers Local 2326, now based in South River, N.J. Ackerman had pleaded guilty in December 2018 after being indicted in January 2017. His partner in crime, former union president Sergio Acosta, was sentenced a little over a year ago to three years of home confinement, and ordered to pay $32,000. The actions follow a probe by the Labor Department’s Office of Labor-Management Standards, Office of Inspector General and Employee Benefits Security Administration.
Lawrence Ackerman, now 55, a … Read More ➡
Considering what Sergio Acosta stole, and enabled his business partner to steal, he is one lucky man. On January 15, Acosta, formerly president of United Auto Workers Local 2326 and trustee of a related health plan, was sentenced in Trenton federal court to three years of supervised release for scamming the plan and keeping a large portion of claims payouts. He also was ordered to pay $32,000 in restitution. Acosta had pleaded guilty last April to a superseding information count of theft, embezzlement and fund conversion. He and a New Jersey businessman, Lawrence Ackerman, had been charged in January 2017 in the scheme, which resulted in a $6.6 million loss to Horizon Blue Cross Blue Shield of New Jersey. Ackerman, who pleaded guilty in December, is set for sentencing on March 20. The actions follow a U.S. Labor Department probe.
As Union Corruption Update has noted (here and here), Sergio … Read More ➡
The year 2018 saw the indictment, conviction and sentences of plenty of organized labor scams. New York City played host to some of the largest. For sheer magnitude, nothing anywhere could match the network of union fraud surrounding the construction of Hudson Yards, a large-scale, mixed-use development on Manhattan’s West Side. Set for completion in 2024, the project from the start has been a source of easy money for labor organizations affiliated with the Building and Construction Trades Council of Greater New York. The general contractor, Related Companies, having reached the limits of frustration, filed suit last March with the State Supreme Court against the council and its president for promoting or allowing illegal practices that allegedly have added over $100 million to the total project cost.
In other cases from the Big Apple, the president of a United Industrial and Service Employees local, Rocco Fazzolari, pleaded guilty … Read More ➡
First, the union leader pleaded guilty. Then, it was his business partner’s turn. On December 14, Lawrence Ackerman, head of a pair of shell insurance brokerages, pleaded guilty in U.S. District Court for the District of New Jersey to a superseding information for health care fraud, part of a long-running scheme that fleeced a United Auto Workers benefit plan and a Blue Cross Blue Shield affiliate out of a combined $6.6 million. He had been indicted in January 2017. Sergio Acosta, former president of United Auto Workers Local 2326, pleaded guilty to his role in the scam last April. The actions follow a joint investigation by the U.S. Labor Department’s Office of Labor-Management Standards, Office of Inspector General and Employee Benefits Security Administration.
Union Corruption Update has covered this case twice before (here and here). Lawrence Ackerman, now 54, a resident of Old Tappan (Bergen County), N.J., was … Read More ➡