Former Pennsylvania Health Network CEO pleads guilty to role in alleged $2M fraud

A former healthcare executive from West Middlesex has pleaded guilty to charges related to an alleged conspiracy to defraud Pennsylvania’s non-profit Primary Health Network out of nearly $2 million between 2011 and 2019. Former PHN CEO John Laeng’s plea resolves most of the federal charges against him and paves the way for a sentencing hearing next spring.

Laeng, 57, entered a guilty plea last week before U.S. District Judge J. Nicholas Ranjan in Pittsburgh. He pleaded guilty to one count of conspiracy to commit wire and mail fraud and one count of conspiracy to commit money laundering.

The charges are tied to a complex scheme that federal prosecutors say involved Laeng and four other co-defendants, two of whom were also former executives at the victim organization, Primary Health Network.

Judge Ranjan set Laeng's sentencing for March 16, 2026. The maximum possible sentence for the two counts of conviction is 30 years in prison—20 years for the fraud conspiracy and 10 years for the money laundering conspiracy. The final sentence will be determined by the court after considering factors in the federal sentencing guidelines.

The plea agreement details the financial penalties Laeng must face. He is jointly and severally liable with his co-defendants for $1,980,904.46 in restitution to Primary Health Network. This figure includes losses from two separate schemes central to the case. Laeng also agreed to a forfeiture money judgment of $654,300.

Under the terms of the agreement, Laeng withdrew his earlier plea of not guilty and acknowledged responsibility for the conduct underlying the remaining counts against him. In exchange, the United States Attorney’s Office for the Western District of Pennsylvania has agreed to move for the dismissal of those remaining counts after sentencing is imposed.

Prosecutors allege the years-long scheme involved using sham contracts, inflated bids, and kickbacks directed against Primary Health Network, a non-profit organization that provides healthcare services to thousands of patients across the region.

The indictment alleged that Laeng, a former CEO, worked with former CEO Drew Pierce, of West Middlesex, and former facilities director Mark Marriott, of Sharpsville, to operate Topcoat Plus, which prosecutors described as a "purported" management firm. This firm and other related companies allegedly submitted fraudulent invoices to the health network for services.

Laeng's plea marks the second guilty plea in the case, signaling a move toward resolution in a complex case involving the alleged abuse of executive positions at a non-profit institution.

The plea agreement also includes a waiver of Laeng's right to appeal his sentence in most circumstances. The government, however, retains its right to advise the court on the full extent of Laeng's involvement and the impact on the victims at the time of the sentencing hearing.

Other defendants charged in the indictment include Christopher O’Brien, of Masury, and John O’Brien, also of Masury.

Christopher O’Brien, the owner of Excel Construction, previously pleaded guilty to one count of conspiracy to commit wire or mail fraud and is awaiting sentencing on October 29.  His sentencing has been postponed multiple times. John O’Brien, who controlled a telecommunications company, Tele-Data, allegedly submitted inflated bids for work and paid kickbacks to Marriott.

While Laeng and Christopher O'Brien have pleaded guilty, the case against the other three co-defendants—Pierce, Marriott, and John O'Brien—is pending. All three have pleaded not guilty and are scheduled to go on trial in February.

Judge Ranjan denied motions earlier this year filed by the remaining defendants seeking to dismiss the charges. The court previously indicated that the trial for the outstanding defendants is expected to last three weeks or less.