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PITTSBURGH, PENNSYLVANIA — An Ohio electrician has been sentenced to two years in federal prison for participating in a fraudulent billing operation that diverted money from Primary Health Network, a nonprofit medical organization headquartered in Sharon, Pennsylvania. The sentencing adds another prison term to a federal prosecution involving former healthcare executives, a facilities manager, inflated construction invoices, and kickback arrangements that cost the organization substantial sums of money.
John O’Brien, 63, of Masury, Ohio, received a 24-month prison sentence after being convicted on three counts of wire fraud. U.S. District Judge J. Nicholas Ranjan imposed the sentence, which was announced October 16, 2026, by U.S. Attorney Troy Rivetti of the Western District of Pennsylvania.
During sentencing, Judge Ranjan also determined that O’Brien had given false testimony during his trial. The finding became an additional issue before the court as it considered his conduct and the appropriate punishment.
O’Brien controlled Keystone Tele-Data, a company that performed electrical work on a construction project in Lewistown, Pennsylvania, where Primary Health Network was expected to serve as the master tenant. The project became part of a broader fraudulent billing arrangement involving individuals who held positions of authority within the medical organization.
The scheme operated through a company called TopCoat, which former Primary Health Network executives Drew Pierce and Jack Laeng, together with former facilities manager Mark Marriott, placed between the healthcare organization and its legitimate vendors.
Rather than having Primary Health Network pay contractors directly for their services, the arrangement routed invoices through TopCoat. The intermediary billed the organization for amounts exceeding what the actual vendors were paid, retaining the difference even though it performed no substantive services for Primary Health Network.
In O’Brien’s portion of the scheme, Keystone Tele-Data submitted artificially inflated invoices to TopCoat. The intermediary passed those charges to Primary Health Network while adding further fraudulent amounts. Court evidence established that some of the funds received by Keystone Tele-Data were used to make kickback payments to Marriott.
The case developed from a federal investigation into several fraudulent arrangements that operated over multiple years. In May 2023, prosecutors announced a 17-count indictment naming five individuals: Pierce, Marriott, Laeng, John O’Brien, and Christopher O’Brien. At the time, investigators alleged that the combined schemes had defrauded Primary Health Network of more than $2 million between 2011 and 2019. Prosecutors emphasized that the defendants were not all charged with participating in every part of the operation.
According to federal court proceedings, Pierce, Laeng, and others also participated in a separate contracting scheme in which Primary Health Network entered agreements with a developer in exchange for concealed kickback payments. Under that arrangement, approximately half of certain payments made by the medical organization were redirected to entities controlled by participants in the scheme.
Federal prosecutors reported that this contracting operation generated more than $1.7 million in kickback payments between 2013 and 2020. The money was distributed among those involved without the knowledge of Primary Health Network’s board of directors.
The TopCoat arrangement produced additional losses. In the May 2026 sentencing announcement for Marriott, federal authorities placed the organization’s losses from that scheme at more than $500,000. Prosecutors also described other misconduct involving inflated vendor invoices, concealed personal expenditures, and financial benefits obtained by individuals responsible for managing the organization’s operations.
Three former Primary Health Network officials had already been sentenced before O’Brien appeared for sentencing.
Drew Pierce, 58, of West Middlesex, Pennsylvania, received 40 months in federal prison on April 23, 2026. Jack Laeng, 72, of Lake Milton, Ohio, was sentenced to 24 months on April 16. Both former chief executive officers were convicted of conspiracy to commit wire fraud and money laundering.
Mark Marriott, 59, of Sharpsville, Pennsylvania, received a 30-month prison sentence on May 8, followed by one year of supervised release. His convictions included conspiracy to commit wire fraud, conspiracy to commit money laundering, and filing a false federal income tax return.
The underlying offenses were particularly consequential because Primary Health Network provides medical services to people in underserved Pennsylvania communities, including patients who may lack the financial resources to pay for care. Money diverted through improper contracts and fraudulent charges represented funds taken from an organization established to serve those communities.
The prosecution does not establish that any particular patient was denied treatment because of the fraud. It does establish that individuals entrusted with organizational finances and vendor relationships used those positions to obtain money through dishonest arrangements.
Assistant U.S. Attorney William B. Guappone prosecuted O’Brien’s case on behalf of the federal government. The FBI and Internal Revenue Service–Criminal Investigation conducted the investigation, examining the financial transactions, business arrangements, and conduct that led to the convictions.
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