Two grand jury indicted two North Jersey men Monday on charges they conspired to defraud Horizon Blue Cross Blue Shield of New Jersey and an auto workers union out of $5.6 million, U.S. Attorney Paul J. Fishman announced.
Sergio Acosta, 66, of Passaic, the former president of United Auto Workers Local 2326, and Lawrence Ackerman, 53, of Old Tappan, were indicted on conspiring to defraud Horizon and conspiring to defraud the union’s health care plan.
Acosta was a Local 2326 employee from 2002 to 2008 and was responsible for the union’s operations and benefits plan. He became a representative and employee of the UAW International Union.
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Ackerman created shell companies that he used to market health insurance to non-employees, and made it seem as though the people worked for the companies and who wanted health insurance coverage.
Acosta and Ackerman allegedly conspired to defraud Horizon of $5.6 million by covering 700 to 800 ineligible people Ackerman recruited across the country.
Horizon discovered the fraud and pulled its coverage of the union. Ackerman allegedly then permitted the people to continue to be covered by the union’s self-insurance care plan, Fishman said.
Acosta and Ackerman could each face up to 20 years in prison and a $500,000 fine, Fishman said. They will be arraigned at a later date.
