Two former CEOs of a Pennsylvania nonprofit are facing prison for fraud.
Drew Pierce of West Middlesex and Jack Laeng of Lake Milton, Ohio, who ran Primary Health Network (PHN), were convicted for defrauding the organization of millions of dollars. Pierce, 58, was sentenced to 40 months in prison, while Laeng, 72, was given a 24-month sentence.
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Prosecutors claim the two colluded with others to extract kickbacks from contracts and constructed a fictitious company, Topcoat, to drain money. These tactics cost the group over $1.5 million. Pierce also utilized business money to cover personal expenses.
The FBI and IRS investigated the case. Another co-defendant is scheduled to be sentenced next year.
PHN, a non-profit medical organization, is based in Sharon, Pennsylvania.
On April 7, the Department of Justice established the National Fraud Enforcement Division to target those who misuse taxpayer funds. This endeavor supports Vice President J.D. Vance’s government-wide commitment to eliminate fraud and waste in federal welfare programs.
