5 accused of defrauding Primary Health Network of $2 million

Eric Poole, The Herald, Sharon, Pa.
·2 min read

May 11—PITTSBURGH — More than three years after federal agents served subpoenas at Sharon-based Primary Health Network, five people — including two former CEO — have been indicted and accused of stealing more than $2 million from the non-profit medical provider.

The U.S. Attorney's Office for the Western District of Pennsylvania handed down a 17-count indictment Thursday against Drew Pierce, 55, of West Middlesex; Mark Marriott, 56, of Sharpsville; John Laeng, 70, of West Middlesex; John O'Brien, 60, of Masury, Ohio; and Christopher O'Brien, 58 of Masury, Ohio.

Laeng and. Pierce are former CEOs of the organization, and Marriott is a former facilities administrator. It is unclear what the O'Briens' connection to PHN was.

The five are charged with conspiracy to commit mail/wire fraud, conspiracy to commit money laundering and mail fraud. Acting U.S. Attorney Troy Rivetti said Thursday in a press release that the five are accused of combining to steal more than $2 million from Primary Health Network by "a series of schemes," according to a press release, although all of the defendants are not accused in participating in all of the illegal activity. The schemes were not detailed further.

"Defrauding a non-profit medical organization not only harms that organization, but it also does great indirect harm to the patients these organizations are created to help," said Acting United States Attorney Troy Rivetti, a Hermitage native.

On Jan. 29, 2020, federal agents raided Primary Health Network's corporate headquarters in Sharon and the affiliated PHN Charitable Foundation, also in Sharon.

Federal authorities did not confirm or deny involvement in the investigation at the time. However, Primary Health Network's board dismissed Pierce and Marriott April 6, 2020. At the time of the raid, Laeng had retired but was a member of the PHN Charitable Foundation board.

Primary Health Network operates health centers in 16 counties in Pennsylvania — including Mercer, Butler, Cambria, Crawford, Erie, Lawrence, Northumberland and Venango — and Ashtabula County in Ohio. The agency is a community health care provider that serves unserved and underserved communities.

PHN Charitable Foundation is the agency's fundraising arm.

Each of the mail fraud, wire fraud and conspiracy to commit mail/wire fraud counts carries a maximum sentence of 20 years in prison and a fine of $250,000 or twice the amount stolen. The conspiracy to commit money laundering charges carry a maximum sentence of 10 years in prison and the same scale of fines for each count.

The FBI and IRS criminal investigation division participated in the investigation along with the U.S. Attorney's office.

NOTE: All suspects are to be presumed innocent until proven or adjudicated guilty in court.