As reported by Aol., a former television news anchor and her spouse are facing serious legal repercussions following an indictment by the United States Justice Department. Stephanie Hockridge-Reis, aged 41, and Nathan Reis, aged 45, stand accused of orchestrating a fraudulent scheme to acquire COVID-19 relief funds—a serious offense that could result in lengthy prison sentences for both individuals if they are found guilty.
Prosecutors allege that the couple engaged in deceptive practices by submitting false and fraudulent applications for Paycheck Protection Program (PPP) loans from the federal government, despite being ineligible to do so. Hockridge-Reis, who once held the role of news anchor at ABC15-TV in Phoenix, and her husband co-founded Blueacorn, a lender service provider purportedly established to assist small businesses and individuals in navigating the complexities of obtaining COVID-19 relief funds.
The Justice Department's findings indicate that Hockridge-Reis and Reis fabricated crucial documents, including payroll records, tax forms, and bank statements, to facilitate the acquisition of these loans.
Additionally, the indictment claims that the couple charged clients illicit fees based on a percentage of the funds they received, further exploiting the situation.
In a troubling twist, the couple allegedly recruited referral agents who instructed prospective borrowers on how to submit false applications for PPP loans. The Justice Department's documentation states, “In order to obtain a greater volume of kickbacks from borrowers and percentage of lender fees from the [Small Business Administration], Reis, Hockridge, and their co-conspirators submitted PPP loan applications that they knew contained materially false information.”
At this stage, the Justice Department has not disclosed an exact total of the fraudulent money allegedly obtained by the couple. However, a report released by a congressional panel in 2022 noted that Blueacorn generated nearly $300 million in profits. The company informed lawmakers that it processed over $1 billion in PPP application fees while citing expenses close to $700 million.
This report further suggested that Blueacorn’s operations were not geared toward supporting small businesses, but rather aimed at securing loans from larger clients to maximize commission earnings. Reports also indicate that Hockridge-Reis and Reis personally obtained $300,000 in PPP loans, partly through their own company’s involvement.
According to testimonies collected by congressional investigators, individuals reviewing loan applications at Blueacorn expressed concerns about being instructed to prioritize speed over legitimacy in their assessments. This concern was echoed by Hockridge-Reis in a Slack message, where she stated, “I mean … I don’t believe in prioritizing the biggest loans over the smallest … but, there should be some understanding that as we get started … closing these monster loans will get everyone paid.”
Further compounding the issues, another Slack message from Hockridge-Reis revealed her dismissive attitude towards smaller loan applications: “Delete them (small loans). Who f—— cares. We’re not the first bank to decline borrowers who deserve to be funded.”
In a particularly shocking allegation, Reis is said to have submitted a loan application that falsely claimed he was an African American and a veteran, as detailed in the congressional report. The ongoing legal proceedings shed light on the alleged misconduct and raise serious questions regarding the couple’s ethical practices in the wake of a national crisis.
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