Collegeville Man, Bank CEO, Sentenced To Prison For Fraud

A Collegeville man and CEO of Nova Bank has been sentenced to 14 months in prison for his role in a fraudulent attempt to obtain millions in public funds for his bank.

The U.S. Attorney's Office Eastern District of Pennsylvania announced Monday that Brian Hartline, 52, would be imprisoned and also fined $50,000 after being found guilty of conspiracy.

Hartline, President and CEO of NOVA, was arrested and found guilty on April 27 alongside Board Chairman and co-conspirator Barry Bekkedam.

Authorities said the pair formed NOVA, based in Berwyn, in 2002. By 2008, the bank was in danger of failing due to bad loans and investments. The bank then applied for $13.5 million through the U.S. Department of the Treasury Troubled Asset Relief Program, according to officials. As a condition of being granted the funds, NOVA would need to raise an additional $15 million in private capital.

Hartline and Bekkedam organized a scheme to loan money to three individuals, who then paid the money back to NOVA to make it seem as though the bank had raised additional funding. All along, however, the "new money" was the bank's own money, officials said.

The bank was not granted the money and was closed in 2012.

Patch file photo.