Related Federal Cases
- Christopher Glynn, Wire Fraud and Money Laundering, New Jersey 2024 · Connecticut
- Donald Smith, Wire Fraud, Pennsylvania 2023 · Pennsylvania
- Andrew A. Demasi, Mail and Wire Fraud, Pennsylvania 2007 · California
- Samuel Hayden, Wire Fraud, Pennsylvania 2023 · Pennsylvania
- James Grimes, Wire Fraud and Tax Evasion, Pennsylvania 2023 · Pennsylvania
Two CEOs Sentenced to Prison for Defrauding Non-Profit Medical Organization
PITTSBURGH, Pa. – Drew Pierce, 58, and Jack Laeng, 72, the former CEOs of Primary Health Network (PHN), a non-profit medical organization headquartered in Sharon, Pennsylvania, have been sentenced to prison for their roles in a scheme to defraud the organization of millions of dollars.
Pierce was sentenced to 40 months of imprisonment on April 23, 2026, while Laeng received a 24-month prison sentence on April 16, 2026.
According to court documents, Pierce engaged in multiple schemes to defraud PHN over the course of almost a decade, with Laeng joining him in two of those schemes. The first scheme involved kickback payments of 50% of the funds a developer received from PHN, resulting in a loss to the company of more than $1.5 million. Laeng was the CEO of PHN during the beginning of the scheme, from 2011 to about 2014, when Pierce took over as CEO.
The duo also engaged in a scheme in which they inserted a company called TopCoat between PHN and the company’s legitimate vendors. Through this scheme, PHN paid TopCoat, which provided no services other than paying 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.
Pierce separately engaged in another kickback scheme and a scheme to pay his own personal expenses out of PHN accounts and conceal those payments as business expenses.
Assistant United States Attorneys William B. Guappone and Jeffrey R. Bengel prosecuted this case on behalf of the government. The Federal Bureau of Investigation and Internal Revenue Service–Criminal Investigation were commended for their investigation leading to the successful prosecution of the defendants.
Pierce and Laeng were convicted of conspiracy to commit wire fraud and money laundering. The exact criminal charges are conspiracy to commit wire fraud and money laundering.
The Federal Bureau of Investigation and Internal Revenue Service–Criminal Investigation were involved in the investigation leading to the convictions.
The case is part of the government’s efforts to combat fraud and 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.
Key Facts
- State: Pennsylvania
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
