PHOENIX — In addition to criminal wire fraud charges, Scottsdale-based Blueacorn's founders face a second federal investigation for possible civil False Claims Act violations.
In November, Nathan Reis and his wife, Stephanie Hockridge, a former ABC15 news anchor, were indicted on four wire fraud charges and one conspiracy to commit wire fraud charge.
Their financial technology company, Blueacorn, was created in 2020 and processed Paycheck Protection Program loans for lending institutions as part of a COVID-19 pandemic relief program.
According to the indictment, the couple fraudulently obtained loans for themselves and others that were guaranteed by the U.S. Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. They are accused of fabricating payroll records, tax documentation, bank statements, and other paperwork. According to the indictment, Reis and Hockridge charged some borrowers illegal kickbacks based on a percentage of the funds received.
Last month, Reis and Hockridge filed a court motion requesting their criminal trial be delayed at least 120 days after they learned the U.S. Department of Justice's civil division had launched a "parallel" investigation under the False Claims Act.
ABC15 is committed to finding the answers you need and holding those accountable.
Submit your news tip to Investigators@abc15.com
The False Claims Act says a person who knowingly submits, or causes to submit, false claims to the government is liable for three times the government’s damages plus a penalty, according to the DOJ website.
A judge granted the continuance in the couple's criminal trial.
In court paperwork, The couple's attorneys indicated the additional time would allow for the "possibility of a global resolution that would obviate the need for a separate False Claims Act suit."
It's unclear how much money the federal government would seek if a lawsuit were filed. Blueacorn received more than $1 billion in fees for processing PPP loans. So far, the government has alleged only a fraction of the loans were fraudulently obtained.
You can reach Senior Investigative Reporter Melissa Blasius by email at melissa.blasius@abc15.com or call 602-803-2506. Follow her on X @MelissaBlasius or Facebook.
