Former Arizona news anchor Stephanie Hockridge-Reis and her husband Nathan Reis face up to 100 years in prison for alleged COVID-19 relief fraud involving the Paycheck Protection Program.
A lot of people who abused COVID government assistance are finally being caught.
At a Glance
- Hockridge-Reis and Reis indicted for conspiracy and wire fraud related to PPP loans
- Couple co-founded Blueacorn, a service provider for COVID-19 relief funds
- Accused of submitting false applications and coaching others to do the same
- Each charged with one count of conspiracy and four counts of wire fraud
- If convicted, they face a maximum of 20 years in prison for each count
Former News Anchor and Husband Charged in Fraud Scheme
Stephanie Hockridge-Reis, a former news anchor for ABC affiliate Channel 15 (KNXV-TV) in Arizona, and her husband Nathan Reis have been indicted on charges related to COVID-19 relief fraud. The couple, who left Arizona for Puerto Rico in 2021, are accused of exploiting the Paycheck Protection Program (PPP) through their company, Blueacorn, which they co-founded in 2020.
The indictment, unsealed in the Northern District of Texas, charges Hockridge-Reis and Reis with one count of conspiracy to commit wire fraud and four counts of wire fraud. Each count carries a potential 20-year sentence, meaning the couple could face up to 100 years in prison if convicted on all charges.
A former Phoenix news anchor and her husband have been indicted in connection with a fraud scheme involving a relief program that aimed to help businesses pay various costs during the COVID-19 pandemic. https://t.co/VNGxjNViuS
— FOX 10 Phoenix (@FOX10Phoenix) November 23, 2024
Alleged Fraudulent Activities
According to the Department of Justice, the couple allegedly “submitted PPP loan applications that they knew contained materially false information.” The scheme reportedly involved fabricating documents such as payroll records, tax documentation, and bank statements to secure unqualified funds from the federal government’s pandemic assistance program.
“Other evidence revealed Hockridge-Reis described the PPP as ‘$100 billion dollars of free money,'” the DOJ stated.
The indictment alleges that Hockridge-Reis and Reis not only submitted fraudulent applications themselves but also recruited referral agents to coach borrowers on submitting false applications. They allegedly offered a “VIPPP” service to help borrowers complete applications, instructing them to provide false information to increase their chances of approval.
Blueacorn’s Rapid Growth and Questionable Practices
Blueacorn, the company co-founded by Hockridge-Reis and Reis, expanded its operations through agreements with two lenders. The firm collected and reviewed PPP applications for these lenders, receiving a percentage of the fees for each approved loan. This business model led to rapid growth, with Blueacorn’s partner lenders processing nearly three times as many PPP loans in 2021 as J.P. Morgan Chase and Bank of America combined.
“Reis and Hockridge are charged with one count of conspiracy to commit wire fraud and four counts of wire fraud. If convicted, they face a maximum penalty of 20 years in prison on each count,” a source stated.
However, this rapid expansion came under scrutiny. A Congressional report called for a federal investigation into Blueacorn due to its handling of PPP loans. Concerns were raised about the company’s loan review process, with reviewers reporting a lack of training and extremely brief loan review times, often less than 30 seconds.
Legal Proceedings and Next Steps
Nathan Reis has been arrested, while Stephanie Hockridge-Reis is scheduled to appear in federal court in Fort Worth, Texas, on November 25. The case highlights the ongoing efforts to uncover and prosecute fraudulent activities related to pandemic assistance programs.
As the legal proceedings unfold, the case against Hockridge-Reis and Reis serves as a stark reminder of the potential consequences of exploiting government aid programs. It also underscores the need for continued vigilance in detecting and preventing fraud in future relief efforts.
