A former healthcare executive from West Middlesex has pled guilty to charges related to an alleged conspiracy to defraud Pennsylvania’s non-profit Primary Health Network of roughly $2 million between 2011 and 2019. Former PHN CEO John Laeng’s plea settles the majority of the federal allegations against him, clearing the road for a sentencing hearing next spring.
Last Monday, Laeng, 57, pleaded guilty before U.S. District Judge J. Nicholas Ranjan in Pittsburgh. He pleaded guilty to one count of conspiracy to commit wire and mail fraud as well as one count of money laundering.
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The charges are tied to a complex scheme that federal prosecutors believe to have implicated Laeng and four other co-defendants, two of whom were also former officials at the victim organization, Primary Health Network.
Judge Ranjan scheduled Laeng’s sentencing on March 16, 2026. The maximum sentence for both counts of guilt is 30 years in prison—20 years for the fraud conspiracy and 10 years for the money laundering conspiracy. The court will determine the final sentence based on considerations in the federal sentencing guidelines.
The plea deal specifies the financial penalties that Laeng must incur. He is jointly and severally liable, with his co-defendants, for $1,980,904.46 in restitution to Primary Health Network. This amount reflects losses from two distinct schemes essential to the case. Laeng also agreed to a forfeiture judgment of $654,300.
According to the conditions of the deal, Laeng withdrew his earlier not guilty plea and accepted responsibility for the behavior that led to the remaining counts against him. In exchange, the United States Attorney’s Office for the Western District of Pennsylvania has agreed to file a motion to dismiss the remaining counts after the sentence is imposed.
Prosecutors said the years-long fraud featured phony contracts, inflated bids, and kickbacks directed at Primary Health Network, a nonprofit organization that offers healthcare services to thousands of patients throughout the region.
The indictment said that Laeng, a former CEO, collaborated with former CEO Drew Pierce of West Middlesex and former facilities director Mark Marriott of Sharpsville to run Topcoat Plus, which prosecutors described as a “purported” management firm. This company, along with others, reportedly submitted fake invoices to the health network for services.
Laeng’s guilty plea is the second in the case, indicating a move toward settlement in a complex case involving the alleged abuse of senior positions at a nonprofit organization.
The plea deal also waives Laeng’s right to appeal his punishment in most instances. However, the government retains the right to advise the court on the full scope of Laeng’s involvement and the impact on the victims at the sentencing hearing.
Other defendants named in the indictment include Christopher and John O’Brien of Masury.
Excel Construction’s owner, Christopher O’Brien, already pleaded guilty to one count of conspiracy to conduct wire or mail fraud and is scheduled for sentencing on October 29. His sentence has been postponed several times. John O’Brien, the owner of Tele-Data, is accused of inflating bids and paying kickbacks to Marriott.
While Laeng and Christopher O’Brien have pleaded guilty, the cases against the remaining three co-defendants—Pierce, Marriott, and John O’Brien—are still continuing. All three have pled not guilty and are expected to stand trial in February.
Judge Ranjan refused motions filed earlier this year by the remaining defendants to dismiss the accusations. The court has stated that the trial for the other defendants is expected to last three weeks or less.
