The founders of Blueacorn, a Scottsdale-based company that processed Paycheck Protection Program (PPP) loan applications during the pandemic, have been indicted. The indictment lists four criminal counts for wire fraud, and one for conspiracy to commit wire fraud.
An indictment unsealed Thursday in Texas charges two cofounders of Blueacorn in connection with a scheme to fraudulently obtain COVID-19 relief money guaranteed by the U.S. Small Business Administration (SBA) through the PPP under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The document states that 45-year-old Nathan Reis and his wife, 41-year-old Stephanie Hockridge Reis, a former ABC15 News anchor, allegedly submitted false and fraudulent PPP loan applications on behalf of themselves and their businesses, including by fabricating documents that they submitted in their loan applications to receive loan funds for which they were not eligible.
The indictment alleges the couple co-founded Blueacorn in April 2020 to help small businesses and individuals receive PPP loans. For larger loans, Reis and other co-conspirators allegedly fabricated documents, including payroll records, tax documentation, and bank statements. Reis and Hockridge allegedly charged borrowers illegal kickbacks based on a percentage of the funds received.
Reis, Hockridge and others are accused of expanding Blueacorn's operations through lender service provider agreements (LSPAs) with two lenders.
Blueacorn, under LSPAs, collected and reviewed PPP applications from potential borrowers on behalf of the lenders and worked with them to submit applications to the SBA in exchange for a percentage of the fees that the SBA paid to lenders for approved PPP loans, according to the indictment.
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.
ABC15 previously reported the couple had been living a lavish lifestyle in Puerto Rico for the past few years.
Reis was arrested in Puerto Rico this week.
According to federal documents, Hockridge will make her first appearance in a Texas federal courtroom on Monday.
Read the full indictment below
