Ex-union official admits embezzling funds from benefit plan
Apr. 09, 2018
NWARK, N.J. (AP) — The former president of United Auto Workers local in New Jersey has admitted embezzling funds from its employee benefit plan.
Federal prosecutors say 65-year-old Sergio Acosta pleaded guilty Friday to theft/embezzlement of funds. The former Passaic resident, who now lives in Utuado, Puerto Rico, faces up to five years in prison when he's sentenced Sept. 21.
Prosecutors didn't specify how much money was stolen. But they have previously said Acosta and an insurance broker defrauded the benefit care plan of about $6.6 million.
Acosta was president of Edison-based UAW Local 2326 and oversaw its benefit plan.
Prosecutors say Acosta and his co-conspirator created two shell companies to market insurance to hundreds of people from across the country not employed by them. They say Acosta let some of those people stay on the union's plan after it was discovered they weren't eligible.