An insurance broker with an office in Fort Lee today admitted defrauding Horizon Blue Cross Blue Shield, U.S. Attorney Craig Carpenito announced.
Officials say, Lawrence Ackerman, 54, a resident of Old Tappan, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a superseding information charging him with one count of health care fraud.
According to documents filed in this case and statements made in court:
Ackerman was the chief operating officer of Atlantic Business Associates and Atlantic Medical Associates, two “shell” companies through which he marketed health insurance nationally to people who were not his employees and therefore ineligible for health coverage. During the month of January 2011, he delivered $481,500 in health care benefits to ineligible participants.
The count of health care fraud to which Ackerman pleaded guilty is punishable by a maximum penalty of 10 years in prison and a fine of $250,000.
Authorities initially charged Ackerman in a two-count indictment with conspiracy to defraud Horizon Blue Cross Blue Shield of $5.6 million and the welfare fund of Local 2326 of $1 million in fraudulent health care claims. Under terms of the plea agreement, Ackerman will be responsible for making full restitution to Horizon and the union’s benefit plan for their losses. Sentencing is scheduled for March 20, 2019.