U.S. District Court Judge C. Darnell Jones II on Jan. 23, sentenced former Nova Bank Chairman Barry Bekkedam to 11 months in prison for his role in a fraud conspiracy to obtain $13.5 million in public funds for the Berwyn, Pa.-based bank.
Bekkedam was also ordered to pay a fine of $100,000.
Bekkedam and co-defendant Brian Hartline, former Nova Bank president and CEO, were found guilty of conspiracy to defraud the U.S., Troubled Asset Relief Program fraud and two counts of false statements to the federal government.
In October 2008, NOVA Financial Holdings Inc., the bank's parent, applied for about $13.5 million through the TARP. Bekkedam and Hartline devised a scheme to make NOVA bank appear more financially sound than it was – that new money was being invested in the bank.
Ultimately, the bank did not receive TARP funds. It failed in October 2012.