Former Primary Health Network CEOs Sentenced to Prison for Defrauding Non-Profit Medical Organization of Millions of Dollars

PITTSBURGH, Pa. - Two former CEOs of Primary Health Network (PHN), a non-profit medical organization headquartered in Sharon, Pennsylvania, have been sentenced in federal court to terms of imprisonment on their convictions for conspiracy to commit wire fraud and money laundering, United States Attorney Troy Rivetti announced today.

United States District Judge J. Nicholas Ranjan imposed the sentences on Drew Pierce, 58, of West Middlesex, Pennsylvania, and Jack Laeng, 72, of Lake Milton, Ohio, sentencing Pierce on April 23, 2026, to 40 months of imprisonment and Laeng on April 16, 2026, to 24 months of imprisonment.

According to information presented to the Court, Pierce engaged in multiple schemes to defraud PHN over the course of almost a decade, with Laeng joining him in two of those schemes. First, Pierce, Laeng, and others agreed to enter into contracts with a developer on behalf of PHN in return for kickback payments of 50% of the funds the developer received from PHN. PHN's board of directors was not aware of the kickback payments, which ultimately caused a loss to the company of more than $1.5 million. Laeng was the CEO of PHN for the beginning of the scheme, from 2011 to about 2014, at which time Pierce took over as CEO.

Pierce, Laeng, and others also engaged in a scheme in which they inserted a company called TopCoat between PHN and the company's legitimate vendors. Through the scheme, PHN paid TopCoat, which provided no services other to then pay the true vendors a lesser price. PHN's board of directors was unaware that TopCoat performed no actual work and was made up entirely of PHN insiders. The TopCoat scheme caused a loss to PHN of more than $400,000. In addition to these schemes, Pierce separately engaged in another kickback scheme, as well as in a scheme to pay his own personal expenses out of PHN accounts and conceal those payments as business expenses.

Another co-defendant in some of the schemes, Mark Marriott, is scheduled to be sentenced on May 8, 2026.

Assistant United States Attorneys William B. Guappone and Jeffrey R. Bengel prosecuted this case on behalf of the government.

United States Attorney Rivetti commended the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of the defendants.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.