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December 22, 2015

Wayne man sentenced to prison for defrauding Penn of $3 million

Kenneth Kapikian receives 60 months in prison

Courts Sentencing
Penn Thom Carroll/for PhillyVoice

UPenn campus

A man who pleaded guilty to defrauding the University of Pennsylvania of $3 million was sentenced Tuesday to 60 months in prison.

Kenneth Kapikian, 58, of Wayne, pleaded guilty in June to six counts of wire fraud and one count of conspiracy to commit money laundering for his role in a scheme to falsely bill Penn for services never rendered.

Kapikian and Dennis Gagliardi, a co-defendant who also pleaded guilty, charged Penn for services they never provided to the Sheraton University City Hotel, where Kapikian served as general manager and Gagliardi as chief engineer. The hotel is owned by the university. They also directed hotel vendors to inflate their invoices and provide kickbacks.

RELATED STORY: Two men charged in scheme to defraud Penn of $3M

The scheme lasted from May 2008 until January 2014, according to court documents.

U.S. District Court Judge Cynthia Rufe also ordered Kapikian to pay $3.04 million in restitution.

Gagliardi, of Chester Springs, is awaiting a Jan. 8 sentencing after pleading guilty to four counts of wire fraud and one count of conspiracy to commit money laundering.