⏱ 3 min read
TWO FORMER CEOS OF A WESTERN PENNSYLVANIA MEDICAL NETWORK HAVE BEEN SENTENCED TO PRISON FOR STEALING MILLIONS FROM THEIR OWN COMPANY.
Drew Pierce, 58, and Jack Laeng, 72, were the top dogs at Primary Health Network (PHN) in Sharon, Pennsylvania. They used their power to bilk the non-profit medical organization out of more than $1.9 million through a series of brazen schemes.
The scams went down over almost a decade, with Pierce and Laeng taking turns as CEO. Pierce, who took over in 2014, was the mastermind behind most of the schemes. He rigged contracts with a developer, pocketing 50% of the cash PHN paid out. He also used a shell company called TopCoat to overcharge PHN’s vendors and then pay them less, keeping the difference for himself.
Laeng, who was CEO from 2011 to 2014, joined in on the kickback scheme and also helped Pierce set up TopCoat. The company was a fake, with no actual work being done, but it helped the duo siphon off over $400,000 from PHN.
Pierce went rogue on his own, too, using PHN’s accounts to pay his personal expenses and lying about it to the company’s board.
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📋 Key Facts
- Crime: White Collar Crime
- Defendant: money laundering
- Location: PA
- Source: DOJ Press Release
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