Wall Man Admits Embezzling $140,000 From Pension Fund He Managed

NEWARK, N.J. – The former administrative manager of a carpenters’ union pension fund has admitted embezzling approximately $140,000 from the fund and making false statements on a required report to the U.S. Department of Labor, U.S. Attorney Philip R. Sellinger announced today.

George R. Laufenberg, 72, of Wall, pleaded guilty before U.S. District Judge Kevin R. McNulty in Newark federal court Monday, June 6, to two counts of an indictment charging him with embezzling approximately $140,000 in pension benefits and making false statements to the labor department.

Laufenberg also is a former member of the Port Authority of New York and New Jersey Board of Commissioners, nominated by then-Gov. Chris Christie. He was confirmed by the New Jersey State Senate on July 10, 2014, according to the authority website. He resigned in 2017.

Laufenberg was the administrative manager of the Northeast Carpenters Pension Fund, which was subject to the Employee Retirement Income Security Act (ERISA). Laufenberg was a fiduciary and participant in the pension fund.

According to the federal indictment, "Laufenberg was promoted to that position in 1984 by George H. Laufenberg, Sr., who was the head of the New Jersey Carpenters Union from at least 1979 until the early 1990s. Defendant Laufenberg was responsible for conducting the day-to-day operations of these plans. As Administrative Manager, Defendant Laufenberg was a fiduciary with respect to these plans and routinely made discretionary decisions that affected their management and the disposition of their assets."

Laufenberg admitted stealing $140,000 that was paid to him under a deferred compensation agreement to which he was not entitled, the U.S. Attorney's office said in a press statement.

Laufenberg also admitted that he made false statements in a form required under ERISA that he filed to the Department of Labor on behalf of the pension fund.

The maximum penalty for each count is five years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 6.

Defense counsel for defendant Peter W. Till Esq., Springfield Township.

According to the Port Authority website bio of Laufenberg, he was administrative manager of the Carpenter's Union Fund managed more than $2 billion in assets. The fund provides apprenticeship and training, health, pension, annuity and vacation benefits to more than 15,000 union members and their families and 7,000 retirees, the Port Authority bio states.

U.S. Attorney Sellinger credited special agents of the DOL Employee Benefit Security Administration, under the supervision of Thomas Licetti, Regional Director; special agents of the DOL Office of the Inspector General, under the supervision of Special Agent in Charge Jonathan Mellone; and agents of the Port Authority of New York/New Jersey, under the supervision of Inspector General John Gay, with the investigation leading to the guilty plea.

The government is represented by Senior Litigation Counsel V. Grady O’Malley of the Organized Crime/Gangs Unit, and Assistant U.S. Attorney Kendall R. Randolph of the Organized Crime and Drug Enforcement Task Force Unit.