Ex-union president, insurance broker charged in $6.6M scheme


NEWARK — A former union official and an insurance coverage dealer have been indicted on conspiracy costs after allegedly defrauding a Newark-based mostly medical insurance supplier out of roughly $6.6 million, federal prosecutors introduced Monday.

Beneath an indictment returned in U.S. District Courtroom, Sergio Acosta, sixty six, the previous president of United Auto Staff Native 2326, and Lawrence Ackerman, fifty three, each face one rely every of conspiring to defraud Horizon Blue Cross Blue Defend and conspiring to defraud the union’s self-insured healthcare plan, in line with the workplace of U.S. Lawyer Paul Fishman.

Acosta, of Passaic, was answerable for overseeing the native’s profit plan throughout his time as president, and continued serving as a trustee even after taking a job with the union’s nationwide management, in line with prosecutors.

Union president will get three years for embezzling $200K

Prosecutors say Ackerman, of Previous Tappan, created two shell corporations — Atlantic Enterprise Associates and Atlantic Medical Associates — that he used to market healthcare insurance coverage to individuals who weren’t truly employed by the businesses.

Prosecutors say the 2 males used Ackerman’s corporations to cowl seven hundred to 800 ineligible members, who Ackerman allegedly recruited from throughout the nation.

Acosta allegedly permitted a few of these ineligible members to stay on the union’s self-insured healthcare plan after Horizon Blue Cross Blue Defend found the fraud and rescinded protection.

Acosta and Ackerman every resist 10 years in jail and a $250,000 advantageous if convicted, in line with the U.S. Lawyer’s Workplace.

Prosecutors say each will probably be arraigned at a later date.

Thomas Moriarty could also be reached at tmoriarty@njadvancemedia.com. Comply with him on Twitter at @ThomasDMoriarty. Discover NJ.com on Fb.

 



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