Fmr. Union Manager From LBI Embezzled $1.5M From Benefits: Feds

HARVEY CEDARS, NJ — A former union administrative manager from Long Beach Island was federally indicted for defrauding more than $1.5 million in funds, U.S. Attorney Craig Carpenito announced Friday. He faces up to five years in prison and a $250,000 fine.

George R. Laufenberg, of Harvey Cedars, was charged in a five-count indictment with embezzlement of pension funds, embezzlement of deferred compensation payments, embezzlement of excess annuity fund contributions, conspiracy to embezzle with a “low-show” employee, and making a false statement in an annual financial report, the feds announced.

Laugenberg, 69, is the former administrative manger of the United Brotherhood of Carpenters. He stole from the carpenters union's benefits plan by self-dealing pension and annuity funds, Carpentino said. He also filed a false form to the U.S. Department of Labor to deny he improperly diverted annuity funds, authorities said.

The manager earned an annual salary of about $300,000. But he used his power to unilaterally to unilaterally grant himself a $120,000 pension and $180,000 in annual deferred compensation, Carpentino said. Laufenberg did so without retiring or getting approval from the fund's board of trustees, according to Carpentino.

The feds also accused Laufenberg of diverting monthly annuity contributions into his monthly paycheck, which breaks IRS regulations. Plus Laufenberg granted a personal friend and low-show employee a full salary with a pension, annuity contributions and full health care coverage, the feds said.

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