TRENTON—A 55-year-old Old Tappan man will spend six months in jail and another six months on home confinement after he plead guilty in federal court to defrauding a state health insurance provider, said U.S. Attorney Craig Carpenito.
Lawrence Ackerman is guilty of health insurance fraud, he admitted in U.S. District Court in December 2018, Carpenito said. He was sentenced on Jan. 15 by U.S. District Judge Anne E. Thompson in Trenton.
The former insurance broker, who had an office in Fort Lee, used two shell companies to market health insurance nationally to people who were not his employees and therefore not eligible for health coverage, said Carpenito.
During the month of January 2011, he delivered $481,500 in health care benefits to ineligible participants, said Carpenito.
Ackerman must make restitution to Blue Cross Blue Shield for the fraudulent claims paid between 2009 and 2013, said Carpenito.
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, said Carpenito. After pleading guilty to a superseding information charging him with one count of health care fraud, those charges are now dismissed, said Carpenito.
Ackerman is also obligated to pay restitution of $1 million to the Local 2326 Welfare Fund, Carpenito said.