Pension Fund Embezzlement: Wall Man Sentenced To Probation, Fine

NEWARK, N.J. – The former administrative manager of a carpenters’ union pension fund and a Wall resident was sentenced yesterday to probation, among other conditions, after he admitted embezzlement from the fund, the U.S. Attorney's office said.

George R. Laufenberg, 72, of Wall, pleaded guilty in U.S. District Court on June 6 to two counts of an indictment charging him with embezzling approximately $140,000 in pension benefits and making false statements to the U.S. Department of Labor.

Laufenberg was sentenced to three years’ probation, six months’ home confinement, a $20,000 fine and is debarred from any future association with a union or benefit plan, a spokesperson for the U.S. Attorney's Office said Wednesday.

Laufenberg 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 in June.

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 office said.

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.