Former leaders of local non-profit medical organization plead guilty to defrauding it of millions

Three former leaders of a Western Pennsylvania-based healthcare organization have pleaded guilty to defrauding the nonprofit of millions of dollars, the Justice Department announced.

PREVIOUS NEWS >>> 5 men, including 3 PA residents, charged with defrauding $2 million from nonprofit organizations

The defendants are Drew Pierce, 58, of West Middlesex; Jack Laeng, 72, of Lake Milton, Ohio, and Mark Marriott, 58, of Sharpsville.

The trio pleaded guilty in federal court to charges of conspiracy to commit wire fraud and money laundering. Marriott also pleaded guilty to filing a false tax return.

The Primary Health Network, headquartered in Sharon, provides medical services to underserved communities regardless of ability to pay, the court was told.

From July 2015 to January 2019, Pierce served as CEO, Laeng as former CEO, and Marriott as resort manager.

Prosecutors say the defendants used a company they owned, called TopCoat, to overcharge PHN by placing it between PHN and third-party vendors. TopCoat paid vendors and then invoiced PHN at inflated prices; The difference was pocketed by the defendants.

On one occasion in 2017, prosecutors say, TopCoat received more than $200,000 from PHN than it paid the actual vendor. Additionally, Pierce, Laeng and others orchestrated a separate scheme that involved kickbacks from third-party contracts and received more than $1.7 million between 2013 and 2020.

Pierce, Laeng and Marriott are scheduled to be sentenced in March. They face up to 20 years in prison for wire fraud conspiracy and up to 10 years in prison for money laundering conspiracy; Additional penalties will also be imposed due to Marriott’s tax crime.

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