Law & Justice

Former Official of Edison Township-Based Union Plead Guilty

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TRENTON, NJ - A one-time official for an Edison-based union admitted Friday that he embezzled funds from the union’s employee benefit plan, U.S. Attorney Craig Carpenito announced.

Sergio Acosta, 65, of Puerto Rico, pleaded guilty before in Trenton federal court to a superseding information charging him with one count of theft, embezzlement and conversion to his own use, or to the use of another, money and funds of an employee welfare benefit fund.

According to documents filed in this case and statements made court:

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"Acosta was the former president and a representative of United Auto Workers Local 2326, as well as a trustee of its health and welfare fund. Lawrence Ackerman, 53, of Old Tappan, New Jersey, allegedly formed Atlantic Business Associates (ABA) and other shell companies in 2001 in order use the Local 2326 welfare fund to provide medical insurance coverage to individuals who were not employees of ABA and therefore ineligible to participate in the union’s welfare fund. These individuals were willing to pay excessive monthly premiums to obtain medical coverage provided by Local 2326 welfare fund because they were unable to get similar coverage elsewhere.

"Local 2326 was also obligated to pay contributions for its own staff employees to the welfare fund, which would in turn pay premiums to Blue Cross Blue Shield. However, based on the hundreds of ineligible enrollees that were recruited by Ackerman and permitted to use the Local 2326 fund, Acosta failed to pay premiums for his own staff employees that were still due to the fund from July 2011 through October 2012."

Acosta faces up to five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 21.

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