Grimy Times
Nathan Reis, 45, and Stephanie Hockridge, 41, also known as Stephanie Reis, both of Puerto Rico and previously of Arizona, were charged yesterday in the Northern District of Texas with one count of conspiracy to commit wire fraud and four counts of wire fraud.
The indictment alleges that Reis and Hockridge, who are married, co-founded Blueacorn in April 2020 to assist small businesses and individuals in obtaining Paycheck Protection Program (PPP) loans. However, they allegedly submitted false and fraudulent PPP loan applications on behalf of themselves and their businesses.
Reis and Hockridge allegedly fabricated documents, including payroll records, tax documentation, and bank statements to receive loan funds for which they were not eligible. They also charged borrowers illegal kickbacks based on a percentage of the funds received.
As part of the alleged scheme, Blueacorn’s operations were expanded through lender service provider agreements (LSPAs) with two lenders. Under the LSPAs, Blueacorn collected and reviewed PPP applications from potential borrowers on behalf of the lenders and worked with the lenders to submit applications to the Small Business Administration (SBA) in exchange for a percentage of the fees that the SBA paid to the lenders for approved PPP loans.
Reis and Hockridge allegedly recruited co-conspirators to work as referral agents and coach borrowers on how to submit false PPP loan applications.
Reis and Hockridge face a maximum penalty of 20 years in prison on each count if convicted.
The case was investigated by the FBI, IRS-CI, Special Inspector General for Pandemic Recovery (SIGPR), Federal Reserve Board Office of Inspector General (FRB-OIG), and Small Business Administration Office of Inspector General (SBA-OIG).
Acting Assistant Chief Philip Trout of the Criminal Division’s Fraud Section, Trial Attorneys Elizabeth Carr and Ryan McLaren of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorney Matthew Weybrecht for the Northern District of Texas are prosecuting the case.
Related Federal Cases
- Stephanie Hockridge, PPP Wire Fraud, Texas 2023 · Arizona
- Nathan Reis, PPP Loan Fraud, PR 2024 · Texas
- Nathan Reis, 20 Years for COVID-19 Relief Fraud, Dallas TX, 2024 · Texas
- Nine Defendants Charged with $100M TRICARE Fraud, Dallas TX, 2023 · Texas
- Stephanie Hockridge, PPP Loan Fraud, Texas 2024 · Texas
Key Facts
- State: Texas
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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