Latest news with #Blueacorn
Sky News AU
a day ago
- Business
- Sky News AU
Disgraced news anchor admitted to COVID fraud scheme in text to husband: ‘We don't quite qualify'
A former Emmy-nominated TV news anchor convicted in a billion-dollar COVID fraud scheme sent a scandalous text to her partner in crime that joked about cheating taxpayers. Stephanie Hockridge-Reis, who worked for a local station in Phoenix before becoming a fintech entrepreneur, sent the message to her husband, Nathan Reis, after applying for Payment Protection Program (PPP) loans during the height of the pandemic. 'This is us trying to apply for free money — when we don't quite qualify. lol,' she texted Reis, 47, according to a federal indictment obtained by The Arizona Republic. The couple was accused of fraudulently obtaining over $300,000 in PPP loans for themselves, including one application that falsely claimed he was a veteran and an African American. Reis took a plea deal on Monday and will be sentenced in November. Hockridge-Reis, 42, was found guilty on one count of conspiracy to commit wire fraud in June by a jury in the Northern District of Texas. She was acquitted on four additional counts of wire fraud. Sentencing is scheduled for Oct. 10. She faces up to 20 years in prison. The Post has sought comment from the duo. The couple's Scottsdale-based fintech firm, Blueacorn, which the couple co-founded in 2020, processed over $12.5 billion in PPP loans — with somewhere between $250 million and $300 million going to the company's ownership, including Hockridge-Reis. Blueacorn received over $1 billion in taxpayer-funded processing fees for facilitating PPP loans but spent less than 1% ($8.6 million) on fraud prevention and only $13.7 million on eligibility verification, according to a congressional investigation. The PPP was an $800 billion federal loan initiative launched in 2020 to help small businesses keep workers employed during the pandemic. It was part of a broader effort — including grants, tax credits and emergency loans — aimed at stabilizing the US economy and preventing mass business closures and layoffs. Investigators claimed that the couple used the proceeds to enrich themselves personally, however. The former KNXV-TV anchor claimed that her actions were a 'sincere effort to support small businesses' in navigating a chaotic government problem during an era of 'unprecedented need.' As part of the proceedings, Congress said it obtained a video created by Reis and Hockridge-Reis showing off large amounts of cash in a bar on Dec. 21, 2021. According to public records, Reis relocated to San Juan, Puerto Rico, which has no capital gains tax, following his work at Blueacorn. Another video months earlier showed Hockridge and Reis on the balcony of a luxury beachfront apartment in San Juan, The Post previously reported. A congressional report found that Blueacorn routinely failed to properly vet applicants and charged illegal 'success fees' to borrowers — violating Small Business Administration rules. The report also detailed how Blueacorn's leadership instructed staff to prioritize speed over accuracy. Hockridge-Reis was once a familiar face in Arizona households. She spent seven years as an anchor at KNXV-TV, the ABC affiliate in Phoenix, and had previously worked as a reporter for CBS News Radio in London. She was nominated for an Emmy and named 'Favorite Newscaster' by Arizona Foothills Magazine. Her conviction marks one of the highest-profile PPP fraud cases to date involving a public figure. Fraud related to COVID-19 relief programs was unprecedented in US history, with losses estimated in the hundreds of billions. The PPP, Economic Injury Disaster Loans and unemployment insurance programs were especially vulnerable — with watchdogs reporting widespread misuse, insider abuse and systemic failures in fraud prevention. Originally published as Disgraced news anchor admitted to COVID fraud scheme in text to husband: 'We don't quite qualify'
New York Post
2 days ago
- Business
- New York Post
Disgraced news achor admitted to COVID fraud scheme in text to hubby: ‘We don't quite qualify'
A former Emmy-nominated TV news anchor convicted in a billion-dollar COVID fraud scheme sent a scandalous text to her partner in crime that joked about cheating taxpayers out of taxpayer money. Stephanie Hockridge-Reis, who worked for a local station in Phoenix before becoming a fintech entrepreneur, sent the message to her husband, Nathan Reis, after applying for Payment Protection Program (PPP) loans during the height of the pandemic. 'This is us trying to apply for free money — when we don't quite qualify. lol,' she texted Reis, 47, according to a federal indictment obtained by The Arizona Republic. 5 Former TV anchor Stephanie Hockridge-Reis sent an scandalous text to her husband joking about cheating t taxpayers out of government funds. House Select Subcommittee on the Coronavirus Crisis The couple was accused of fraudulently obtaining over $300,000 in PPP loans for themselves, including one application that falsely claimed he was a veteran and an African American. Reis took a plea deal on Monday and will be sentenced in November. Hockridge-Reis, 42, was found guilty on one count of conspiracy to commit wire fraud in June by a jury in the Northern District of Texas. She was acquitted on four additional counts of wire fraud. Sentencing is scheduled for Oct. 10. She faces up to 20 years in prison. The Post has sought comment from the duo. 5 The anchor and her husband, Nathan Reis, were convicted of a billion-dollar COVID cash scheme in June. Facebook / Stephanie Hockridge The couple's Scottsdale-based fintech firm, Blueacorn, which the couple co-founded in 2020, processed over $12.5 billion in PPP loans — with somewhere between $250 million and $300 million going to the company's ownership, including Hockridge-Reis. Blueacorn received over $1 billion in taxpayer-funded processing fees for facilitating PPP loans but spent less than 1% ($8.6 million) on fraud prevention and only $13.7 million on eligibility verification, according to a congressional investigation. The PPP was an $800 billion federal loan initiative launched in 2020 to help small businesses keep workers employed during the pandemic. It was part of a broader effort — including grants, tax credits and emergency loans — aimed at stabilizing the US economy and preventing mass business closures and layoffs. 5 The former KNXV-TV anchor claimed that her actions were a 'sincere effort to support small businesses' in navigating a chaotic government problem during an era of 'unprecedented need.' Facebook / Stephanie Hockridge Investigators claimed that the couple used the proceeds to enrich themselves personally, however. The former KNXV-TV anchor claimed that her actions were a 'sincere effort to support small businesses' in navigating a chaotic government problem during an era of 'unprecedented need.' As part of the proceedings, Congress said it obtained a video created by Reis and Hockridge-Reis showing off large amounts of cash in a bar on Dec. 21, 2021. According to public records, Reis relocated to San Juan, Puerto Rico, which has no capital gains tax, following his work at Blueacorn. 5 Reis took a plea deal over his role in the funding scandal. KPNX Another video months earlier showed Hockridge and Reis on the balcony of a luxury beachfront apartment in San Juan, The Post previously reported. A congressional report found that Blueacorn routinely failed to properly vet applicants and charged illegal 'success fees' to borrowers — violating Small Business Administration rules. The report also detailed how Blueacorn's leadership instructed staff to prioritize speed over accuracy. 5 Hockridge-Reis was once a familiar face in Arizona households. She spent seven years as an anchor at KNXV- TV, the ABC affiliate in Phoenix. Facebook / Stephanie Hockridge Hockridge-Reis was once a familiar face in Arizona households. She spent seven years as an anchor at KNXV-TV, the ABC affiliate in Phoenix, and had previously worked as a reporter for CBS News Radio in London. She was nominated for an Emmy and named 'Favorite Newscaster' by Arizona Foothills Magazine. Her conviction marks one of the highest-profile PPP fraud cases to date involving a public figure. Fraud related to COVID-19 relief programs was unprecedented in US history, with losses estimated in the hundreds of billions. The PPP, Economic Injury Disaster Loans and unemployment insurance programs were especially vulnerable — with watchdogs reporting widespread misuse, insider abuse and systemic failures in fraud prevention.
UPI
3 days ago
- Business
- UPI
Ex-Blueacorn exec admits to COVID-era small business loan scheme
Aug. 12 (UPI) -- An ex-financial executive is likely to spend years behind bars over wire fraud charges in an alleged pandemic-era financial scheme to defraud the federal government's small business loan program. The U.S. Department of Justice said Monday that Nathan Reis, now of Rio Grande in Puerto Rico by way of Arizona, pleaded guilty in Texas to one count of conspiracy to commit wire fraud for his role as company chief at Scottsdale-based lender Blueacorn. The plea was tied to attempts to fraudulently obtain relief money via the U.S. Small Business Administration's Paycheck Protection Program during the COVID-19 pandemic. "This defendant had the opportunity to help small businesses overcome tremendous financial hardships during a time of national crisis but instead exploited the system to line his own pockets with taxpayer money," Nancy E. Larson, the acting U.S. attorney for the northern district in Texas, said in a statement. Reis, 47, created the venture in 2020 with his wife, Stephanie Hockridge, a former KNXV television anchor in Phoenix, purportedly to help small businesses and owners to obtain the federal government's PPP loans. "Blueacorn connects technology and financial expertise to help small businesses, independent contractors, self-employed individuals, and gig workers with their financial needs," the company's website reads. In June, Hockridge was found guilty of conspiracy but acquitted on multiple counts of wire fraud. His guilty plea was filed after an initial plea of not guilty. The SBA's Paycheck Protection Program was part of the 2020 CARES Act singed by then-U.S. President Donald Trump during the virus outbreak in his first term. It was targeted to infuse money into small businesses to bankroll payroll and other business-related expenses. According to court documents, Reis conspired with business associates to "submit false and fraudulent PPP loan applications." It included "fabricating documents that falsified income and payroll figures in order to receive loan funds for which they were not eligible." Federal officials contend that Blueacorn was the vehicle through which Reis and co-conspirators submitted an undisclosed number of fraudulent PPP loan applications that, according to the Justice Department, "they knew contained materially false information to make more money." "Reis and others fabricated documents, including tax documents and bank statements," the deparment added. "As part of the conspiracy, Reis and his co-conspirators charged borrower's fees based on a percentage of the funds received." The SBA's well-intended PPP opened the door to waves of other similar acts of fraud. "During a national emergency, this defendant exploited a taxpayer-funded program that individuals and small businesses desperately needed to survive," acting Assistant U.S. Attorney General Matthew Galeotti in DOJ's criminal division, said in a release. The fraud section at Justice has seized nearly $80 million and prosecuted more than 200 defendants in over 130 separate PPP-related criminal cases. In January, seven people were charged by a federal grand jury in a multi-state conspiracy that defrauded more than a half-billion dollars in over 8,000 bogus pandemic-era tax returns. "Reis and others exploited a program meant to keep small businesses afloat during the pandemic," stated Assistant Director Jose A. Perez of the FBI's Criminal Investigative Division. Any individual with info on COVID-related fraud attempts may contact the department. Reis is schedule for sentencing November 21. He faces a max penalty of 20 years in prison contingent upon sentencing guidelines by a federal judge, and $250,000 in fines.
Daily Mail
24-06-2025
- Business
- Daily Mail
Former TV anchor facing years in prison over shocking Covid lies
A glamorous TV news anchor facing years in prison over shocking Covid lies has learned her fate. Stephanie Hockridge has been found guilty of one count of conspiracy to commit wire fraud. She had pleaded not guilty but could now be jailed for decades. Hockridge was acquitted of four counts of wire fraud. The scandal involved photos of her holding cash in a bathtub, luxury beachfront apartments, and a billion-dollar fintech scheme that left American taxpayers footing the bill. A federal jury found the 42-year-old former KNXV-TV anchor guilty concluding that she orchestrated a vast scheme to exploit the Paycheck Protection Program (PPP) during the height of the pandemic. Hockridge's sentencing is scheduled for October 10, and she faces up to 20 years in prison for the conspiracy conviction. The verdict caps a dramatic fall from grace for the Emmy-nominated journalist who once graced magazine covers as 'Arizona's Favorite Newscaster.' But behind the studio lights and on-air smiles, federal prosecutors say Hockridge was running a Covid cash-grab empire alongside her husband, fintech founder Nathan Reis, 46. The US government's case centered on Blueacorn, the fintech firm Hockridge co-founded with Reis in April 2020 just weeks after leaving her anchor job at ABC15. The company claimed to help small businesses navigate the PPP loan process, a lifeline created by Congress to keep workers employed during the Covid crisis. In reality, investigators say Blueacorn became a fraud factory. According to a congressional subcommittee, the company processed over $12.5 billion in loans and pocketed up to $300 million for its ownership group, including Hockridge, while spending virtually nothing on fraud prevention. Another text cited by prosecutors reportedly described her as 'the MVP' of the operation. According to court filings, Hockridge and her husband submitted fraudulent PPP applications for themselves, including one claiming Reis was both African American and a military veteran - both lies. The couple received at least $300,000 in personal PPP funds. They also charged borrowers illegal 'success fees,' violating SBA rules, and even struck kickback deals with banks, collecting percentages of loans that were funded, prosecutors alleged. Blueacorn's practices were so brazen that Congress launched a formal investigation, revealing that while the company collected over $1 billion in taxpayer-funded processing fees, it spent only $8.6 million on fraud prevention - less than 1 percent of its intake. One congressional report summarized the company's internal directive succinctly: Speed over accuracy. Some employees, with zero financial training, were reportedly processing hundreds of loans in under 30 seconds each. 'This was not about helping small businesses,' a federal official close to the investigation said. 'It was about siphoning off a national crisis for personal gain.' Hockridge transformation from trusted journalist to convicted felon has gripped Arizona's media community. She spent seven years as a respected anchor for KNXV-TV, and previously worked for CBS News Radio in London. Her career accolades include an Emmy nomination and features in local lifestyle publications. But prosecutors painted a starkly different portrait in court: not a broadcaster-turned-entrepreneur, but a co-conspirator in one of the biggest pandemic profiteering cases to date. The couple allegedly rerouted money through a chain of bank accounts, using interstate wires to disguise their tracks. 'Nathan Reis and Stephanie Hockridge… knowingly devised and intended to devise the scheme to defraud,' the indictment states. 'To obtain money and property by means of materially false and fraudulent pretenses.' At the heart of the prosecution's case was an alleged attitude of impunity. Prosecutors said Hockridge once described the PPP program as '$100 billion of free money'. Her husband's trial is scheduled for August where he faces similar charges.
Daily Mail
24-06-2025
- Business
- Daily Mail
Glamorous TV anchor facing years in prison over shocking Covid lies learns her fate
A glamorous TV news anchor facing years in prison over shocking Covid lies has learned her fate. Stephanie Hockridge-Reis was found guilty of one count of conspiracy to commit wire fraud. She had pleaded not guilty but could now be jailed for decades. Hockridge was acquitted of four counts of wire fraud. The scandal involved photos of her holding cash in a bathtub, luxury beachfront apartments, and a billion-dollar fintech scheme that left American taxpayers footing the bill. A federal jury found the 42-year-old former KNXV-TV anchor guilty concluding that she orchestrated a vast scheme to exploit the Paycheck Protection Program (PPP) during the height of the pandemic. Hockridge's sentencing is scheduled for October 10, and she faces up to 20 years in prison for the conspiracy conviction. The verdict caps a dramatic fall from grace for the Emmy-nominated journalist who once graced magazine covers as ' Arizona 's Favorite Newscaster.' But behind the studio lights and on-air smiles, federal prosecutors say Hockridge was running a Covid cash-grab empire alongside her husband, fintech founder Nathan Reis, 46. The US government's case centered on Blueacorn, the fintech firm Hockridge co-founded with Reis in April 2020 just weeks after leaving her anchor job at ABC15. The company claimed to help small businesses navigate the PPP loan process, a lifeline created by Congress to keep workers employed during the Covid crisis. In reality, investigators say Blueacorn became a fraud factory. According to a congressional subcommittee, the company processed over $12.5 billion in loans and pocketed up to $300 million for its ownership group, including Hockridge , while spending virtually nothing on fraud prevention. While many small businesses struggled to survive during the pandemic, Hockridge and Reis were living large, filming videos with bricks of cash, flaunting Rolex watches, and vacationing on the balconies of tropical locales. Among the most damning evidence: A bathtub photo showing Hockridge holding stacks of $100 bills to her ears like a phone. A video taken from a luxury beachfront apartment in Puerto Rico, where the couple had relocated to avoid U.S. capital gains tax. Internal messages encouraging staff to 'push through' loan applications with no regard for red flags. A so-called 'VIPPP' list that allowed high-dollar clients to bypass security checks. 'Who the f*** cares,' Hockridge allegedly said in one message about improperly rejected applicants. 'We're not the first bank to decline borrowers who deserve to be funded… They can go elsewhere.' Another text cited by prosecutors reportedly described her as 'the MVP' of the operation. According to court filings, Hockridge and Reis submitted fraudulent PPP applications for themselves, including one claiming Reis was both African American and a military veteran - both lies. The couple received at least $300,000 in personal PPP funds. They also charged borrowers illegal 'success fees,' violating SBA rules, and even struck kickback deals with banks, collecting percentages of loans that were funded, prosecutors alleged. Blueacorn's practices were so brazen that Congress launched a formal investigation, revealing that while the company collected over $1 billion in taxpayer-funded processing fees, it spent only $8.6 million on fraud prevention - less than 1 percent of its intake. One congressional report summarized the company's internal directive succinctly: Speed over accuracy. Some employees, with zero financial training, were reportedly processing hundreds of loans in under 30 seconds each. 'This was not about helping small businesses,' a federal official close to the investigation said. 'It was about siphoning off a national crisis for personal gain.' Hockridge's transformation from trusted journalist to convicted felon has gripped Arizona's media community. She spent seven years as a respected anchor for KNXV-TV, and previously worked for CBS News Radio in London. Her career accolades include an Emmy nomination and features in local lifestyle publications. But prosecutors painted a starkly different portrait in court: not a broadcaster-turned-entrepreneur, but a co-conspirator in one of the biggest pandemic profiteering cases to date. During the trial, federal attorneys introduced a superseding indictment alleging that Hockridge and Reis fabricated payroll records, tax documents, and bank statements. In one application, the couple claimed to own an Amazon business generating six figures. Another loan was issued to a nonexistent company they claimed had multiple employees. The couple allegedly rerouted money through a chain of bank accounts, using interstate wires to disguise their tracks. 'Nathan Reis and Stephanie Hockridge… knowingly devised and intended to devise the scheme to defraud,' the indictment states. 'To obtain money and property by means of materially false and fraudulent pretenses.' At the heart of the prosecution's case was an alleged attitude of impunity. Prosecutors said Hockridge once described the PPP program as '$100 billion of free money.' Her husband's trial is scheduled for August where he faces similar charges. Reis, who reportedly moved to San Juan, Puerto Rico, in the aftermath of the scheme, has denied all allegations and also pleaded not guilty. Federal investigators say that Reis played a central role in overseeing Blueacorn's day-to-day operations and financial distributions - and helped foster the toxic culture that prioritized profit above all else. The case is also connected to Eric and Anthony Karnezis, two men who earlier this year pleaded guilty to PPP fraud in a related case. Eric Karnezis agreed to pay between $25 million and $65 million in restitution; Anthony agreed to repay between $3.5 million and $9.5 million. Hockridge's conviction underscores what federal watchdogs have called the largest fraud wave in US history - fueled by emergency Covid aid programs and exploited by thousands of bad actors. The Paycheck Protection Program, meant to protect workers, became a cash cow for predators. Hockridge will be sentenced in October.
