Partner of Collegeville Bank Owner Sentenced for Fraud

The partner of a a Collegeville man and CEO of Nova Bank has been sentenced to 11 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 Tuesday that Barry Bekkedam, 49, of Hope Sound, Florida will be imprisoned and also fined $13.5 million after being found guilty of conspiracy.

Brian Hartline, 52, of Collegeville, was sentenced to 14 months in prison and fined $50,000 in November.

Hartline, the President and CEO of NOVA, was arrested on April 27, 2016, alongside Board Chairman and co-conspirator 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.