An indictment unsealed Thursday charges Nathan Reis, 45, and Stephanie Hockridge, 41, with orchestrating a conspiracy to fraudulently obtain COVID-19 relief funds through the Paycheck Protection Program (PPP). The two, originally from Arizona and now residing in Puerto Rico, are accused of submitting false loan applications to secure funds they were not eligible to receive.
Reis and Hockridge co-founded Blueacorn in April 2020, presenting the company as a service to assist small businesses and individuals in securing PPP loans. However, the indictment alleges that they fabricated payroll records, tax documents, and bank statements to inflate loan amounts, securing larger disbursements than they were entitled to.
The DOJ further alleges that Reis and Hockridge charged borrowers illegal kickbacks, taking a percentage of the funds they helped secure. To expand Blueacorn’s operations, the pair entered into lender service provider agreements (LSPAs) with two lenders, allowing them to process and review PPP applications and receive a portion of the fees from the Small Business Administration (SBA) for approved loans.
Additionally, Blueacorn offered a “VIPPP” program, with Hockridge recruiting co-conspirators as referral agents to coach borrowers on submitting fraudulent applications. Reis, Hockridge, and their co-conspirators allegedly submitted loan applications containing materially false information, including fabricated payroll and tax records, to deceive both lenders and the SBA.
The charges highlight the duo’s intentional actions to defraud the federal relief program during the COVID-19 pandemic.
