Stephanie Hockridge, PPP Loan Fraud, Texas 2023

A federal jury convicted Stephanie Hockridge, a founder of the lender service provider Blueacorn, on Friday, in connection with a scheme to fraudulently obtain tens of millions of dollars in COVID-19 relief money guaranteed by the U. S. Small Business Administration (SBA) through the Paycheck Protection Program (PPP).

According to court documents and evidence presented at trial, Hockridge, also known as Stephanie Reis, 42, of Rio Grande, Puerto Rico, and previously of Arizona, conspired with others to submit false and fraudulent PPP loan applications, including by fabricating documents that falsified income and payroll in order to receive loan funds for which they were not eligible.

"This defendant exploited a national emergency to personally profit from a taxpayer-funded program intended to support vulnerable individuals and small businesses," said Matthew R. Galeotti, Head of the Justice Department's Criminal Division. "This conviction demonstrates the Department's commitment to holding individuals accountable for defrauding the government and wasting taxpayer money."

Hockridge co-founded Blueacorn in April 2020, purportedly to assist small businesses and individuals in obtaining PPP loans. To get larger loans for certain PPP applicants, Hockridge and her co-conspirators fabricated documents, including payroll records, tax documentation, and bank statements.

"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," said Acting U. S. Attorney Nancy E. Larson for the Northern District of Texas. "We are proud of the diligent work of our law enforcement partners to hold her accountable and bring her to justice. Make no mistake, our efforts to bring such fraudsters to justice are ongoing."

Hockridge's conviction demonstrates the FBI's continued commitment to protecting taxpayer-funded programs from fraud and abuse, said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. "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."

Hockridge defrauded the federal government of millions of dollars in pandemic relief funds for her own personal gain and has been brought to justice, said 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.

As proven at trial, Hockridge and her co-conspirators fabricated documents, including payroll records, tax documentation, and bank statements, to get larger loans for certain PPP applicants. The exact amount of money Hockridge and her co-conspirators stole is not specified in the court documents. However, the scheme involved tens of millions of dollars in COVID-19 relief money.

The exact sentence or outcome of Hockridge's conviction is not specified in the press release. However, it is clear that she has been convicted of PPP loan fraud in a Texas court and has been brought to justice.

Source: https://www.justice.gov/usao-ndtx/pr/founder-lender-service-provider-convicted-role-multimillion-dollar-ppp-fraud-scheme