TRENTON, – According to officials, a former insurance broker with an office in Fort Lee. Was sentenced today to six months in prison and six months of home confinement for defrauding Horizon Blue Cross Blue Shield, U.S. Attorney Craig Carpenito announced.
Officials say, Lawrence Ackerman, 55, a resident of Old Tappan, previously 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 (ABA) and Atlantic Medical Associates (AMA), two “shell” companies through which he marketed health insurance nationally to people who were not his employees and therefore ineligible for health coverage. During January 2011, he delivered $481,500 in health care benefits to ineligible participants.
As part of his plea, Ackerman must make restitution to Blue Cross Blue Shield for the fraudulent claims paid between 2009 and 2013. Ackerman originally was charged in a two-count indictment with conspiring to defraud Horizon Blue Cross Blue Shield of $5.6 million in fraudulent claims, and for defrauding the Local 2326 (UAW) Welfare Fund of $1 million in fraudulent claims.
Those charges are now dismissed, and he is also obligated to pay restitution of $1 million to the Local 2326 Welfare Fund.