Latest news with #Scottsdale-based
UPI
2 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.
USA Today
10-07-2025
- Business
- USA Today
Convert Peak Launches Phonetix A.I. to Transform Roofing Sales with Voice-Driven Automation
New Voice AI Assistant Gives Roofing Contractors a Competitive Edge in Storm-Damage Sales Roofing contractors in storm-affected regions are losing up to 30% of potential jobs due to missed calls and delayed follow-ups, according to industry data. To address this costly gap, Scottsdale-based Convert Peak has launched Phonetix A.I., an advanced voice-powered assistant designed to automate lead response, qualification, and scheduling for roofing businesses. With homeowners demanding near-instantaneous responses, manual follow-ups, sticky notes, and unanswered voicemails can no longer keep up with homeowner expectations. Phonetix A.I. leverages conversational voice AI and SMS workflows to engage leads immediately, ensuring no opportunity is left on the table. 'Speed-to-lead isn't just a buzzword-it's the difference between winning and losing jobs in residential construction,' said DeShawn Tavilla, founder of Convert Peak. 'Phonetix A.I. empowers roofing contractors to respond faster than ever, reclaiming lost opportunities and streamlining operations without adding overhead.' Key Features of Phonetix A.I.: Instant Voice Response: Answers inbound calls 24/7, even outside business hours. Smart Lead Qualification: Captures critical details like address, insurance status, and damage type. Automated Scheduling: Matches homeowner availability and books inspections seamlessly. CRM Integration: Updates records in real-time and notifies sales teams of booked jobs. Proven Results: Early adopters of Phonetix A.I. have reported significant improvements, including: A 25% increase in appointment bookings without additional staff. A reduction in unqualified leads and unnecessary callbacks. Faster lead qualification, particularly for storm restoration and insurance-based jobs. Why It Matters: A recent B2B Marketing Trends report revealed that 40% of local trades businesses are losing revenue due to slow response systems. Phonetix A.I. addresses this challenge head-on, providing roofing contractors with the tools they need to stay competitive in a fast-paced market. About Phonetix A.I.: Phonetix A.I. joins Convert Peak's growing suite of sales automation tools, offering voice and SMS workflows, conversational AI, and CRM integration tailored to the unique needs of roofing, construction, and home service businesses. About Convert Peak: Convert Peak is a performance optimization agency dedicated to helping home service companies nationwide maximize their revenue potential. Specializing in high-converting ad funnels, AI-driven customer engagement, and lead recovery systems, Convert Peak transforms inquiries into booked revenue at scale. Learn more at Media Contact: DeShawn Tavilla, Founder Email: deshawn@ | A.I. Voice Assistant: 623-294-4940 SOURCE: Convert Peak View the original press release on ACCESS Newswire
USA Today
27-06-2025
- Business
- USA Today
The development of this tiny Arizona golf course has become a hot-button issue. Why?
After two community meetings drew about 500 attendees, the proposed redevelopment of Shalimar Golf Club in Tempe remains intensely controversial. 'We are even more opposed to it now,' Sean Rogers, whose house abuts the seventh hole of the golf course, said. Rogers attended both community meetings and said the information presented has only served to make him more frustrated with how the process has been handled. 'It's their right to sell it,' Rogers said of the Neuheisel family, which owns the course. 'It's not their right to rezone it at the expense of Tempe residents.' The course closed at the end of April and is under contract to be sold to BB Living, a Scottsdale-based developer of single-family rental homes. BB Living has announced plans to partner with Cachet Homes to build both for-sale single-family homes on the site, along with single-family rentals. About 75% of the units proposed at the new development would be rentals. The proposal calls for 244 new housing units, 65 of which would be for sale. Rogers said after seeing the drawings and plans for the development, he feels it's clear that the new development doesn't fit. 'You're going to shoehorn this odd community into an existing neighborhood and it's tragic,' he said. Tempe general plan calls for housing Branden Lombardi, president of BB Living, said there is a desperate need for housing of all types in Tempe, where a 44-acre site, like the golf course, is nearly impossible to come by. 'There are less than a half-dozen land sites 10 acres or more in Tempe,' he said. The Shalimar site was designated for housing in Tempe's general plan, but the general plan does not dictate future zoning changes. Before any redevelopment can happen at the site, the project must be reviewed by Tempe's Development Review Commission and then voted on by the City Council. There are no meetings scheduled yet, but they likely would not take place until fall at the earliest, the development team said. The Neuheisels and others involved with the development have repeatedly said the golf course was no longer viable, and that they did not have any prospective buyers considering keeping the course. 'I hear the people who are upset about the golf course going away,' Lombardi said. 'But this is very unlikely to be a golf course.' Lombardi said he and his group have made significant changes to the proposal after hearing from the neighborhood, including lowering the density and adding Cachet Homes to the project to build owner-occupied homes. Matt Cody, president of Cachet Homes, said residents have consistently said they oppose any loss of the golf course and the open space, and still find the proposal to be too dense. He said residents have also been opposed to rental housing. 'The golf course is going away with or without us,' he said. 'The density is 60% of what it could be. I don't think the density is inappropriate for the neighborhood.' Cody said the opposition to rental housing instead of owner-occupied units can be 'hurtful.' The rentals proposed at Shalimar will be high-end rentals that look like traditional single-family homes, Lombardi said. At the community meeting, he said rents would likely range from $3,000 to $4,000 per month. The for-sale homes would likely sell for between $800,000 and $1 million. 'What will impact the value of their homes more, a vacant, dead golf course or new rental housing and $800,000 to $1 million new homes?' Lombardi said. Lombardi said his group has tried to work with the community while getting very little input from neighbors. Altered plans for Shalimar Golf Course still not palatable He pointed to an altered part of their plan, which had once called for a public walking path around the site. He said neighbors said they did not like the idea of a public walking path near their homes, so the plan was changed to consolidate the open space into a community lawn, which he envisions to have activities and programming like food trucks and other events. However, Rogers said he is skeptical that the community lawn will serve as any type of gathering place. 'That is going to be a major thoroughfare,' he said of the street along the community lawn. 'Who is going to want to take their dogs or their kids to play there?' Residents at the community meeting took issue with the presented traffic study that showed Country Club Drive operating at 45% capacity. Cody said the study used Tempe's standards for measurement and noted that the golf also generated traffic at the intersection when it was open. Carl Streiff, president of the Shalimar Association, which is leading the opposition to the redevelopment, said he does not see how the developers could get to a proposal that the community would find appropriate. The site is zoned to allow one home per acre, which he said could be acceptable, but any higher density will face opposition, he said. Lombardi said the developers are willing to work with neighbors to find a solution that is palatable for everyone, but said there has been little feedback other than that neighbors do not like the proposal. A letter of intent was submitted by another group that has expressed interest in keeping the course as a golf course. However, the Neuheisel family has said they are not entertaining other offers while under contract with BB Living. 'If there is a counteroffer, we could look at that plan and see if there was anything we could do,' Lombardi said. 'But any other plan would also require some type of action from Tempe.' Streiff said the neighborhood has also been frustrated since the golf course closed and water was shut off, which he said has 'effectively wiped out an ecosystem' that used to live at the course. It has become common, he said, to find water turtles in the streets looking for water now that the lake has dried up. 'It's really sad that the neighborhood is having to watch this happen,' he said, noting that trees are starting to die and animals like birds and foxes have begun leaving the property. New housing hard to find in Tempe However, one Tempe resident said he supports the redevelopment after seeing his friends priced out of buying homes in the city. Daniel Milner, who lives in Tempe but not near Shalimar, said there are very few options in the city for people who don't want to buy and renovate a 50-year-old house. Milner, who works in construction but is unaffiliated with the development, said he bought a house in the city in 2016 that needed major renovations, but his family is outgrowing it and he'd be interested in buying a new build in the city. He is a golfer who played frequently at Shalimar, but said it isn't fair to expect the Neuheisel family to continuously invest in the golf course. 'It's not the first golf course we've lost in Tempe,' he said. 'We lost ASU Karsten, and if that can't stand the test of time, then how can Shalimar?' Path forward requires council supermajority Rogers said he hopes Tempe City Council members are taking notice that so many residents are opposed to the development. The group collected enough signatures to require a rezoning to be approved by a supermajority of council members, not a simple majority as required in most rezonings. Lombardi said the move was expected, because the threshold to require the supermajority is relatively low, and there has been strong opposition. "We understood that was likely to occur when we first started this project," he said. Still, Cody said he would like to get to a point where the project could receive unanimous approval or a 6-1 vote. "I do think the community meetings were successful," he said. "Accurate information was provided so everyone can evaluate on facts instead of rumors." Streiff said he was glad to see such strong turnout at both meetings, but said he and others will have to see what comes of them, calling minor tweaks to the proposal "lipstick on a pig." Like this story? Get more East Valley news straight into your email inbox by signing up for our free weekly East Valley Newsletter, which comes out on Wednesdays. Corina Vanek covers development for The Arizona Republic. Reach her at cvanek@ Follow her on X @CorinaVanek.
Sky News AU
24-06-2025
- Business
- Sky News AU
Ex-TV news anchor Stephanie Hockridge convicted in massive scheme to fraudulently obtain COVID relief funds
Stephanie Hockridge, a former Phoenix news anchor-turned-fintech entrepreneur, has been convicted of conspiracy to commit wire fraud in a federal case involving hundreds of millions of dollars in COVID relief funds. A jury in the Northern District of Texas found Hockridge guilty on one count of conspiracy to commit wire fraud. She was acquitted on four additional counts of wire fraud. Sentencing is scheduled for Oct. 10. Hockridge's conviction was announced on Friday. According to federal prosecutors and investigative reports, Hockridge and her husband, Nathan Reis, fraudulently obtained over $300,000 in Paycheck Protection Program (PPP) loans for themselves, including one application that falsely claimed he was a veteran and an African American. The couple's Scottsdale-based fintech firm, Blueacorn, which they 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. 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 COVID-19 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 alleged that the couple used the proceeds to enrich themselves personally. Congress said it obtained a video created by Reis and Hockridge 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. An Oct. 8, 2021, video obtained by congressional staffers which was geolocated to San Juan showed Hockridge and Reis on the balcony of a luxury beachfront apartment. According to a congressional report, Blueacorn routinely failed to properly vet applicants and charged illegal 'success fees' to borrowers — violating Small Business Administration rules. The congressional report detailed how Blueacorn's leadership instructed staff to prioritize speed over accuracy. Internal messages showed reviewers were told to 'push through' questionable applications, ignore red flags, and skip identity checks unless fraud was 'extremely obvious.' Some staff processed hundreds of loans with no training — sometimes within 30 seconds each. The subcommittee also uncovered the existence of a 'VIPPP' program that allowed high-dollar clients to bypass standard review protocols. Founders dismissed smaller loan applicants with phrases like 'delete them,' 'who f–king cares' and 'they go elsewhere.' Hockridge, 42, 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. Reis is scheduled to stand trial in August 2025 on related charges. Prosecutors allege he played a lead role in directing the company's operations and handling its financial distributions. Hockridge's 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 — possibly up to $1 trillion. 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. The Post has sought comment from Hockridge and Reis. Originally published as Ex-TV news anchor Stephanie Hockridge convicted in massive scheme to fraudulently obtain Covid relief funds
Los Angeles Times
22-06-2025
- Business
- Los Angeles Times
Accounting Firm Growth Spurned by Acquisitions, Global Expansion and New Services
For Southern California's many accounting firms, acquisitions have been a means of expansion as the industry consolidates to streamline operations and enhanced technology. Over the past year, a flurry of acquisitions has also been supplemented by new offerings, such as legal services and global expansion with employees in foreign countries that provide services to support U.S. operations. One of the largest mergers of the past year was CBIZ's $2.3-billion acquisition of Marcum LLP, which closed on November 1. The combined firm is expected to have combined annualized revenue of approximately $2.8 billion. Smaller firms have also been the targets of acquisition as aging partners seek exit plans and firms utilize artificial intelligence and offshore resources to optimize operations. It's a trend that mirrors the wider business climate, according to Aldrich CPAs + Advisors. The firm conducted a survey of more than 100 owners and executives at private companies in California, Oregon and Washington and found that 61% received at least one unsolicited offer to be purchased within the past 12 months, and nearly a quarter of those surveyed received three or more unsolicited offers. Competition to acquire accounting firms has been fierce, but local firms have been able to execute mergers despite interest from national firms. In October, GHJ Accounting, Tax and Advisory Firm acquired Los Angeles-based GGF, which provides audit, tax and consulting services to entrepreneurial businesses and individuals. 'We are proud to integrate GGF into the GHJ family to strengthen our ability to deliver exceptional value to our clients. Their strong client relationships and tailored approach make them a perfect strategic fit for our firm,' said Tom Barry, GHJ managing partner, in a statement. Firms are also expanding by adding new services beyond traditional audit and tax advisory. Two firms quickly took advantage of an Arizona Supreme Court ruling in 2021 that allowed nonlawyers to have an economic interest in law firms under the state's Alternative Business Structure program. The Arizona Supreme Court granted a special license to Big Four firm KPMG to operate a law firm in February. In addition to KPMG, Aprio acquired Radix Law, a Scottsdale-based firm, and launched Aprio Legal in February under the alternative business structure. However, a state law proposed in California may limit the impact of the Arizona ruling. Assembly Bill 931 would prohibit California attorneys from sharing legal fees with out-of-state firms operating under alternative business structures such as those that exist in Arizona and Utah, where non-lawyers, including private equity firms and corporations, may invest in or own law firms. Aprio's addition of a law firm complements its nationwide acquisition spree that included Woodland Hills firm Kirsch Kohn & Bridge in November. The Kirsch Kohn & Bridge acquisition added five partners and more than 30 local professionals. Nationally, it has expanded its footprint with firms in Atlanta, Austin, Baltimore, Denver and Chicago. Plus, it added cybersecurity firm Securitybricks. Firms have also expanded their reach globally by opening new offices worldwide to support operations. For example, Weaver credited its West Coast growth partly due to long-term progress reflected by the firm's global footprint and official expansion into India. It opened four new offices since the beginning of 2025 in India: Kochi, Coimbatore and Bengaluru opened in January, while Weaver's Chennai office opened in March. At Long Beach-based Windes, local tax partner Guy Nicio, who serves on the firm's board of directors, leads its growing Philippines team, which provides employee support and client services. HCVT continued to invest in its Armenia operations, reinforcing a commitment to build infrastructure that supports future growth.
