PITTSBURGH - A key figure in a years-long scheme that allegedly drained nearly $2 million from a regional non-profit healthcare provider is scheduled to plead guilty today in federal court. Drew Pierce, a former top executive for Primary Health Network (PHN), is slated for a change of plea hearing at 1:30 p.m. before U.S. District Judge Nicholas Ranjan in Pittsburgh.

The hearing marks a turn in a complex case that prosecutors say involved a sophisticated pattern of fraud spanning almost a decade, from 2011 to 2019.

Pierce, of West Middlesex, was one of five individuals charged in connection with the alleged scheme to defraud PHN, a non-profit organization dedicated to providing essential community healthcare services across Western Pennsylvania.

Prosecutors allege that high-ranking officials and their associates used their positions to funnel PHN funds through deceptive business practices. The scheme allegedly involved methods such as using false contracts, submitting inflated bids for work, and arranging hidden payments, often called kickbacks, which were directed back to the executives.

Pierce, who also held a CEO position at PHN, was allegedly part of this scheme. Prosecutors charged that Pierce, along with former CEO John Laeng and former facilities director Mark Marriott, operated a company called Topcoat Plus, a "purported" management company that allegedly submitted fraudulent invoices to PHN.

Pierce originally pleaded not guilty to 17 counts in May 2023, which included charges related to conspiracy to commit mail and wire fraud, specific wire fraud counts, a money laundering conspiracy, and specific mail fraud charges. It’s not yet been revealed if Pierce will plead guilty to all charges, some of the charges, or amended charges.

Pierce is the third defendant in the case to move away from an original not-guilty plea. His decision follows that of his former colleague, former PHN CEO John Laeng, who pleaded guilty to a fraud and money laundering conspiracy in late September. Laeng admitted responsibility for nearly $2 million in restitution owed to PHN and agreed to forfeit an additional $654,300.

The second person to plead guilty was Christopher O’Brien, owner of Excel Construction, who is currently awaiting his sentencing hearing.

With Pierce now expected to enter a guilty plea, only two co-defendants maintain their innocence and plan to go to trial: former facilities director Mark Marriott and John O’Brien.

Marriott, who was allegedly one of the three executives operating the management firm Topcoat Plus, is still scheduled for a joint trial.

John O’Brien, who controlled a company called Tele-Data, is alleged to have submitted inflated bids for work and provided kickbacks to Marriott. The trial for Marriott and John O'Brien is currently scheduled to begin in February.