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Former chairman, CEO of failed Nova Bank convicted of fraud

A federal jury convictedthe former chairman and the former CEO of NovaBank for TARP fraud.

The jury found former President and CEO Brian Hartline and formerChairman Barry Bekkedam guilty of conspiracy to defraud the United States, TARPfraud and two counts of false statements to the federal government. The two enacteda scheme to make it appear that new money was being invested in the bank in orderto qualify to receive TARP funds, according to the Office of the Special InspectorGeneral for TARP. They also directed employees to tell the Treasury that the bankreceived new capital.

The two are set to be sentenced July 21.

Nova Financial applied for approximately $13.5 million in TARPfunds but ultimately did not get the bailout. The Berwyn, Pa.-based bank in October 2012. The FDICwas unable to find a buyer for the bank.