Two Mercer County healthcare CEOs sentenced for defrauding non-profit

Two former CEOs of Primary Health Network in Mercer County were sentenced in federal court after being convicted of conspiracy to commit wire fraud and money laundering. 

According to information provided by the U.S. Attorney's Office, 58-year-old Drew Pierce of West Middlesex, Pa., and 72-year-old Jack Laeng of Lake Milton, Ohio, engaged in schemes to defraud PHN over the course of nearly a decade. 

The two men had entered into contracts with a developer on behalf of the company and, in return, received kickback payments of 50%. The board of the company was unaware of the kickbacks, and it ultimately caused a loss of more than $1.5 million. 

They also inserted a company called TopCoat, which they placed between PHN and the company's vendors. That led to PHN paying TopCoat, but TopCoat provided no services to PHN other than to pay the actual vendors a lesser price. 

As part of this scheme, Pierce received kickback payments as well as a scheme to pay his own personal expenses from PHN accounts. 

This scheme caused PHN a loss of more than $400,000. 

As a result, a judge sentenced Piece to 40 months in prison and Laeng to 24 months in prison.