Co-defendant in Primary Health Network defrauding case pleads guilty
Feb. 14—PITTSBURGH — One of the five defendants accused of conspiring to steal more than $2 million from Primary Health Network changed his plea to guilty in federal court Wednesday.
Christopher O'Brien, 58, Masury, Ohio, pleaded guilty Wednesday to a felony count of conspiring to commit mail or wire fraud.
O'Brien agreed to facts presented by the prosecution.
O'Brien, as a contractor, said he directed workers to create fraudulent invoices amounting to $136,200 paid to them by PHN for what was described as flooring projects at PHN branches that his company never performed.
O'Brien is free on bond pending sentencing, which is scheduled for May 29.
The potential maximum sentence is up to 20 years in prison and $250,000 in fines plus restitution of $493,868.72 split among the co-defendants.
Also accused in participating in the conspiracy to defraud PHN between 2011 and 2019 are Drew Pierce of West Middlesex, Mark Marriott of Sharpsville, John "Jack" Laeng of West Middlesex and John O'Brien of Masury.
The remaining defendants are scheduled for pretrial motions on or after April 15.
Pierce was PHN's chief financial officer from 2011 to 2014 and chief executive officer from 2014 until 2020. Laeng was PHN's CEO from 2011 to 2014, an employee of the organization through 2016, and a board member of the affiliated charitable organization PHN Charitable Foundation into 2020.
Marriott was PHN's facilities administrator until 2020.
The five were charged May 9, 2023, with conspiracy to commit mail or wire fraud, conspiracy to commit money laundering and mail or wire fraud.
Federal prosecutors accused the men of creating non-existent companies that received payments from PHN for services never performed.
On Jan. 29, 2020, federal agents, bearing subpoenas and warrants, raided the headquarters of PHN and PHN Charitable Foundation, both in Sharon.
PHN officials and federal authorities had no comment on the subpoenas at the time, However, PHN'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.
The Sharon-based non-profit PHN is a federally qualified health center, an agency designated by the U.S. government to provide health care services to people who would otherwise not have access, either for geographic or economic factors.
PHN operates health centers in 16 counties in Pennsylvania, including Mercer, Butler, Cambria, Crawford, Erie, Lawrence, Northumberland and Venango, as well as in Ashtabula County in Ohio. The agency is a community health care provider that serves unserved and underserved communities.
Follow Melissa Klaric on twitter @HeraldKlaric or email her at mklaric@sharonherald.com
Follow Melissa Klaric on twitter @HeraldKlaric or email her at mklaric@sharonherald.com
