Two former top executives of Sharon-based Primary Health Network are heading to federal prison after a judge ruled they spent years quietly bleeding the nonprofit of more than $1.5 million. Drew Pierce, 58, was sentenced to 40 months, and 72-year-old Jack Laeng received 24 months, after prosecutors said they used a shell company and hidden kickbacks to pad invoices and route cash to themselves, leaving a community clinic with fewer resources to care for patients.
The prison terms followed convictions for conspiracy to commit wire fraud and conspiracy to commit money laundering, according to CBS Pittsburgh. Federal prosecutors told the court the scheme stretched close to a decade and relied on developer contracts that kicked back 50 percent of payments to entities the defendants secretly controlled.
How Prosecutors Say The Scheme Worked
According to federal filings, Pierce, Laeng, and others slipped a company called TopCoat between Primary Health Network and legitimate vendors. Prosecutors say TopCoat billed PHN for inflated amounts, then turned around and paid the real vendors less, quietly pocketing the difference. As detailed by the IRS, TopCoat issued bogus invoices and, on one project alone, collected more than $200,000 above what it paid the actual contractor.
Money And Restitution
Prosecutors told the court the schemes cost Primary Health Network more than $1.5 million in losses and that Pierce’s role alone generated over $400,000 in direct losses to the nonprofit, according to CBS Pittsburgh. Court records reviewed by WFMJ show Laeng’s plea paperwork lists nearly $1.98 million in restitution and a forfeiture of about $654,300.
Legal Fallout
All three senior Primary Health Network officials - Pierce, Laeng, and facilities director Mark Marriott - pleaded guilty late last year, and a handful of other co-defendants have faced related charges and court appearances. Local coverage tracks a 17-count indictment that outlined what federal investigators described as a maze of fake companies, padded bids, and kickback deals that enriched insiders at the nonprofit’s expense, as reported by Pittsburgh Union Progress.
Impact On Patients And The Clinic
Primary Health Network operates as a Federally Qualified Health Center with multiple clinics across Western Pennsylvania and treats patients regardless of their ability to pay, making it a critical safety net for thousands of people in Mercer County. When money meant for operations and construction gets diverted, it can strain services and erode donor and community trust. Primary Health Network highlights its Sharon locations as core hubs in that mission.
The sentencing largely closed the book on Pierce and Laeng, but prosecutors note that financial cleanup and related court business are still moving through the system as final filings land. Federal court dockets for the case remain public and show additional proceedings and scheduling tied to the broader investigation, with DocketAlarm listing ongoing matters.
