Former Primary Health Network facilities manager gets 2.5 years for nonprofit fraud

Michael C. Gelineau, the former facilities manager at Primary Health Network, was sentenced to 2.5 years in federal prison on May 8, 2026, in the U.S. District Court for the Western District of Pennsylvania for his role in defrauding the nonprofit medical organization.

The scheme affected Primary Health Network operations that deliver medical, dental, and behavioral health services to more than 100,000 patients annually across 28 locations in western Pennsylvania. Court records show the fraud involved at least hundreds of thousands of dollars in diverted nonprofit funds used for personal benefit, though the precise loss amount was not detailed in the Department of Justice announcement.

The sentence replaces what had been pretrial release and home detention with immediate incarceration at a yet-to-be-designated federal facility. Upon release Gelineau must serve three years of supervised release and pay full restitution to the victim organization. The judgment takes legal effect on the date of sentencing.

Downstream the ruling requires the U.S. Bureau of Prisons to designate a facility within weeks and begins the formal collection process for restitution payments. Primary Health Network must now update its internal financial controls and insurance claims to reflect the resolved case.

Federal probation officers will monitor compliance during the supervised-release period, and any failure to pay restitution can trigger additional enforcement actions by the U.S. Attorney’s Office.

This marks the latest resolution in federal prosecutions targeting insider fraud at federally qualified health centers. The Department of Justice has pursued similar cases against nonprofit health-system employees in multiple districts over the past five years, often citing violations of 18 U.S.C. statutes governing theft and fraud from organizations receiving federal grants.