TL/DR –
Two former CEOs of Primary Health Network have been convicted of wire fraud and money laundering, leading to their sentences in federal court. Drew Pierce and Jack Laeng were found guilty of defrauding PHN through various schemes over a decade, causing a total loss of nearly $2 million; they created contracts with a developer and received 50% kickback payments, of which the company was unaware, and also created a company called TopCoat which led to unnecessary payments from PHN. The court sentenced Pierce to 40 months in prison, and Laeng to 24 months.
Former CEOs of Primary Health Network Sentenced for Conspiracy to Commit Fraud
Ex-CEOs of Primary Health Network, Drew Pierce, 58, and Jack Laeng, 72, have been convicted and sentenced in federal court for wire fraud and money laundering conspiracy. The duo from West Middlesex, Pa., and Lake Milton, Ohio, respectively, masterminded schemes resulting in significant financial loss to PHN over nearly a decade.
Under their direction, PHN entered into contracts with a developer, with Pierce and Laeng benefitting from 50% kickback payments. The schemes, kept secret from the company’s board, cost PHN over $1.5 million. Additionally, they established a company named TopCoat between PHN and its vendors, causing PHN to pay TopCoat, which provided no services but remunerated the actual vendors with a lower sum.
Pierce personally gained from these kickbacks and used PHN accounts to cover his expenses. This part of their fraudulent activities alone caused PHN another loss of over $400,000.
Following their convictions, the two former CEOs faced justice with Pierce sentenced to 40 months and Laeng to 24 months in prison. For more on this and other news, check out CBS News.
Related Tags:
Primary Health Network, Fraud, Money laundering, Conspiracy, Drew Pierce, Jack Laeng
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