A Texas federal jury has convicted a woman for her role in a multimillion-dollar Paycheck Protection Program (PPP) fraud scheme. Stephanie Hockridge, 42, of Rio Grande, Puerto Rico, and previously of Arizona, was found guilty of conspiracy to commit wire fraud and wire fraud.
Hockridge co-founded Blueacorn, a lender service provider, in April 2020. Blueacorn purportedly assisted small businesses and individuals in obtaining PPP loans. However, Hockridge and her co-conspirators fabricated documents, including payroll records, tax documentation, and bank statements, to obtain larger loans for certain PPP applicants. These fabricated documents enabled them to receive tens of millions of dollars in loan funds for which they were not eligible.
The scheme involved submitting false and fraudulent PPP loan applications, resulting in the defrauding of the federal government of millions of dollars in pandemic relief funds. Hockridge and her co-conspirators used this scheme to enrich themselves during a national emergency when small businesses and individuals needed the funds the most.
The conviction of Stephanie Hockridge demonstrates the Justice Department’s commitment to holding individuals accountable for defrauding the government and wasting taxpayer money. The Department’s efforts to bring such fraudsters to justice are ongoing.
Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, stated, “This defendant exploited a national emergency to personally profit from a taxpayer-funded program intended to support vulnerable individuals and small businesses.” Acting U. S. Attorney Nancy E. Larson for the Northern District of Texas added, “During a time of crisis in our country, this defendant abused the generosity of the American people by stealing money dedicated to the survival of small businesses to fraudulently enrich herself.”
Assistant Director Jose A. Perez of the FBI Criminal Investigative Division stated, “This program was designed to provide critical funds to those struggling during a national crisis, not line the pockets of people seeking to exploit government assistance.” The FBI remains committed to pursuing anyone who abuses the public trust for personal gain. Special Agent in Charge Jon Ellwanger of the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau (CFPB) Western Region added, “Ms. Hockridge defrauded the federal government of millions of dollars in pandemic relief funds for her own personal gain and has been brought to justice.”
Related Federal Cases
- Blueacorn Founder Pleads Guilty in PPP Fraud Scheme · Puerto Rico
- Blueacorn Founder Reis Admits PPP Fraud · Puerto Rico
- Texas Lender Service Provider Founder Convicted in $40M PPP Scam · Texas
- Needville Man Sentenced for $5.5M Kickback & Trading Scam · Puerto Rico
- Landry Leads Push Against Senior Scam Epidemic · Illinois
Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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