3 former Primary Health officials plead guilty to fraud charges

Three former Primary Health Network executives — ex-CEOs Drew Pierce and Jack Laeng, and former facilities manager Mark Marriott — pleaded guilty in federal court to conspiracy charges involving wire fraud and money laundering after admitting they used a shell company, TopCoat, to inflate invoices and pocket profits at the nonprofit’s expense. Prosecutors say the men paid legitimate vendors through TopCoat, then billed Primary Health higher amounts and split the difference, including more than $200,000 on a single project. They also participated in a separate kickback scheme that funneled over $1.7 million to entities they controlled between 2013 and 2020. Marriott additionally admitted to filing a false tax return. All three are scheduled for sentencing in March.

 

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