In a striking case from Texas, former news anchor Stephanie Hockridge has been sentenced to ten years in prison for her involvement in a massive Paycheck Protection Program (PPP) fraud scheme. Hockridge, who previously worked for ABC 15 in Phoenix, and her husband Nathan Reis co-founded a company called Blueacorn during the pandemic, allegedly using it to embezzle funds intended for struggling businesses.
The Department of Justice (DOJ) detailed the depths of the fraud in a recent press release. It revealed that Hockridge created Blueacorn in April 2020 with the false pretense of aiding small businesses in securing PPP loans. However, instead of helping these businesses, she and her associates purportedly fabricated documents to secure these loans for themselves. “According to evidence presented at trial,” stated the DOJ, “Hockridge and her co-conspirators fabricated documents, including payroll records, tax documentation and bank statements.”
The scheme was elaborate. They promised businesses a VIP service—dubbed ‘VIPPP’—which helped guide clients through the process of obtaining loans that were riddled with false information. This included coaching clients on how to submit misleading loan applications. The DOJ emphasized that Hockridge’s group charged kickbacks based on the funds that borrowers received, turning a lifeline program into a personal profit machine.
The scale of the misconduct was staggering. Hockridge and her co-conspirators reportedly processed over $63 million in fraudulent loans before they were caught. The DOJ made it clear that the fraud was vast, saying, “To get more kickbacks from borrowers and a higher percentage of lender fees from the SBA, Hockridge and her co-conspirators submitted PPP loan applications that they knew contained materially false information.”
In June, a jury found Hockridge guilty of conspiracy to commit wire fraud. The recent sentencing on November 21 included not only the decade in prison but also a restitution payment of almost $64 million, reflecting the magnitude of her illegal earnings. As the DOJ noted, “A co-founder of a lender service provider was sentenced to 10 years in prison for participating in a scheme to fraudulently obtain over $63 million in Paycheck Protection Program loans guaranteed by the U.S. Small Business Administration.”
This case serves as a stark reminder of the potential for greed to undermine the integrity of relief programs meant to support the nation in times of need. Hockridge’s story sheds light on how some individuals exploited the very systems established to provide assistance during the pandemic, ultimately leading to devastating consequences—not just for her, but for the many legitimate applicants who relied on the PPP to weather the storm.
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