Former Mercer County health CEO pleads guilty in $3.1M fraud case

PITTSBURGH - A former chief executive of Sharon, Pennsylvania-based nonprofit Primary Health Network (PHN), has pleaded guilty to conspiracy charges in a case alleging he was part of a scheme that defrauded the health care provider of millions of dollars over nearly a decade.
Drew Pierce, of West Middlesex, appeared before U.S. District Judge Nicholas Ranjan in Pittsburgh on Friday, October 31, 2025, and formally withdrew his earlier plea of not guilty. Pierce entered a guilty plea to two counts in the superseding indictment: Conspiracy to Commit Mail and Wire Fraud and Conspiracy to Commit Money Laundering.
The plea agreement makes Pierce the fourth defendant in the complex federal case to accept responsibility for their role in the scheme. This follows the plea of Mark Marriott on October 6, 2025, as indicated in the court record.
By pleading guilty to the two conspiracy counts, Pierce acknowledged his criminal responsibility for the conduct underlying all 17 charges he faced in the indictment. The charges Pierce did not plead guilty to will be dismissed by the U.S. Attorney's Office after sentencing.
As part of the agreement, Pierce accepted liability for financial penalties, which include restitution and money forfeiture.
Pierce is held jointly and severally liable with his co-defendants for $3,107,651 in restitution owed to Primary Health Network, meaning PHN can seek the full amount from any of the individuals held liable. Restitution and any other financial obligation imposed by the court are considered due and payable immediately.
Pierce also agreed to forfeit $671,000, representing property derived from illegal activity, with $536,000 tied to the fraud count and $135,000 tied to the money laundering count.
To pay the obligations, Pierce agreed to participate in the Bureau of Prisons' Inmate Financial Responsibility Program, which applies a portion of a prisoner's salary to any imposed fine or restitution.
The maximum penalty Pierce faces is 20 years in prison on the fraud count and 10 years on the money laundering count.
Following the guilty plea, Judge Ranjan directed the U.S. Probation Office to prepare a Presentence Investigation Report, a document detailing Pierce's background, the crime, and the guidelines calculation.
The court set Pierce's sentencing hearing for March 9, 2026, at 2:00 p.m. The hearing will take place at the United States Courthouse in Pittsburgh.
The case drew attention because the victim was a nonprofit organization providing health care services across Western Pennsylvania. Pierce was one of five people charged in connection with the alleged scheme that federal authorities said spanned from 2011 to 2019. The charges alleged that high-ranking officials used their positions to steer PHN funds through deceptive business practices like false contracts and kickbacks.
Pierce is the fourth defendant to plead guilty. Former PHN CEO John Laeng pleaded guilty to a fraud and money laundering conspiracy in late September 2025 and is responsible for nearly $2 million in restitution and $654,300 in forfeiture.
The second person to plead guilty was Christopher O’Brien, of Masury, who owned Excel Construction. O'Brien pleaded guilty to one fraud conspiracy count and is waiting for his sentencing hearing. That sentencing has been postponed several times.
The third person to plead guilty was former PHN facilities director Mark Marriott, who entered a guilty plea to filing false tax returns, as well as conspiracy to commit wire fraud and money laundering on October 6, 2025.
The sole remaining co-defendant, John O’Brien, who controlled a company called Tele-Data, maintains his innocence and is scheduled to go on trial in February 2026. The trial is expected to last three weeks or less.
