Former New Jersey Carpenters union official charged with embezzling $1.5 million
George R. Laufenberg was making a $300,000 salary when he also started collecting a $120,000 pension and $180,000 in annual deferred compensation, prosecutors allege.
The former administrative manager of benefit funds for the United Brotherhood of Carpenters in New Jersey and New York was indicted Friday by a federal grand jury in Newark for allegedly embezzling more than $1.5 million in union funds, U.S. Attorney Craig Carpenito announced.
George R. Laufenberg, 69, of Harvey Cedars, was the manager of the New Jersey Carpenters’ pension, annuity, and health funds — a position he was given in 1984 by his father, George H. Laufenberg, who ran the politically powerful union at the time, according to the grand jury indictment. In 2016, the younger Laufenberg also assumed that role for the New York Carpenters.
Laufenberg was appointed in 2014 by then-Gov Chris Christie to the Port Authority of New York and New Jersey. According to an undated post on the authority’s website, the funds Laufenberg managed had more than $2 billion in assets and provided benefits to more than 15,000 union members and their families and 7,000 retirees.
He was fired from the union in late 2016. He resigned from the Port Authority board in early 2017.
Prosecutors allege that Laufenberg stole from the benefit plans, which are based in Edison, by using his administrative authority to enrich himself. He also allegedly made a false filing with the federal government about his activities.
Laufenberg had a salary of $300,000 when he began also collecting a $120,000 pension and $180,000 in annual deferred compensation, according to the indictment.
He allegedly used his authority to grant a personal friend, who prosecutors described as a “low-show employee,” with a full salary with pension and annuity contributions, and full health-care coverage.
The indictment alleges that in 1992 he placed his friend, described as “unindicted coconspirator #1,” on the union’s payroll “with the understanding that his role would be, at best, that of a part-time employee," but that he would given full-time compensation.
If found guilty of the five-count indictment, Laufenberg faces a maximum penalty on each count of five years in prison and a $250,000 fine.
Peter W. Till, Laufenberg’s attorney, could not be reached for comment Friday night.