A former facilities manager for Primary Health Network, a non-profit medical organization based in Sharon, Pennsylvania, was sentenced on May 8 to two and a half years in prison followed by one year of supervised release for conspiring to commit wire fraud, money laundering, and filing a false tax return. United States Attorney Troy Rivetti announced the sentencing of Mark Marriott, age 59, of Sharpsville.
United States District Judge J. Nicholas Ranjan imposed the sentence after finding that Marriott played an active role in several schemes defrauding Primary Health Network (PHN). The case highlights ongoing efforts by federal authorities to address fraud within organizations that serve public health needs.
Two other individuals involved in the conspiracy—former PHN CEOs Drew Pierce and Jack Laeng—were previously sentenced in April. Pierce received a sentence of forty months imprisonment while Laeng was sentenced to twenty-four months.
“This prosecution reflects the unfortunate reality of executives abusing their positions of power to commit fraud on a non-profit organization,” said United States Attorney Rivetti. “The sentences here appropriately reflect the serious nature of the defendants’ offenses, and the extensive harm that results from this fraud. Our office and our law enforcement partners will continue to investigate and prosecute these important cases.”
“These crimes are not victimless, and this was not a mistake or a lapse in judgment,” said FBI Pittsburgh Special Agent in Charge Richard Evanchec. “This FBI and our partners will continue to uncover and prosecute those who think they can hide calculated fraud schemes under the guise of contracts, middlemen, and paperwork. After years of deception and millions of dollars stolen, these individuals are now being held accountable for their crimes.”
“IRS-CI and our federal law enforcement partners will aggressively pursue individuals who scheme to defraud healthcare institutions and ultimately victimize the people those institutions serve,” said Internal Revenue Service–Criminal Investigation Philadelphia Field Office Special Agent in Charge Yury Kruty. “Today’s sentence, along with the sentences previously handed down in this case, show that those who commit such offenses will be held to account.”
Court records show Marriott engaged with others in three separate fraudulent schemes against PHN: using an insider company called TopCoat as an unnecessary intermediary between PHN and vendors; directing vendors to inflate invoices so kickbacks could be paid; and using organizational funds for personal expenses without reporting all proceeds on his taxes. The TopCoat scheme alone resulted in losses exceeding $500,000.
Before imposing sentence Judge Ranjan noted Marriott’s critical role in carrying out these actions as well as considerations for just punishment.
Assistant United States Attorneys William B. Guappone and Jeffrey R. Bengel prosecuted the case with investigative support from both FBI agents and IRS criminal investigators.
The Department of Justice recently announced its National Fraud Enforcement Division focused on investigating misuse or theft involving taxpayer dollars.
