Stephanie Hockridge: Former Phoenix news anchor indicted in connection with COVID relief fraud scheme
PHOENIX - Federal officials say a woman who once worked at a Phoenix television station has been indicted in connection with a COVID-19 relief fraud scheme.
In a statement, officials with the U.S. Department of Justice said 41-year-old Stephanie Hockridge and her husband, 45-year-old Nathan Reis, are accused of submitting "false and fraudulent [Paycheck Protection Program] loan applications on behalf of themselves and their businesses, including by fabricating documents that they submitted in their loan applications in order to receive loan funds for which they were not eligible."
Per the U.S. Treasury Department website, Paycheck Protection Program, or PPP, refers to a program by the Small Business Administration that provided small businesses with funds to pay up to eight weeks of payroll costs, including benefits. The funds could also have been used to pay interest on mortgages, rent, and utilities. According to the Associated Press, the plan cost $800 billion.
The SBA's website states that the PPP ended on May 31, 2021.
Statement reveals details of alleged scheme
Officials say the indictment was unsealed on Nov. 21. They also say that both Hockridge and Reis currently live in Puerto Rico, a U.S. territory located in the Caribbean.
Hockridge formerly worked for KNXV-TV, otherwise known as ABC 15 in the Phoenix area. According to a video posted by ABC 15 on their YouTube page, Hockridge left the station in 2018. We first reported on the ties Hockridge and Reis had with Blueacorn in December 2022. At the time, a report by a U.S. House investigations panel alleged that Blueacorn and another company were connected to significant percentages of PPP loan applications with indicators of fraud.
Per federal officials, Hockridge and Reis co-founded a lender service provider called Blueacorn in April 2020 with a purported goal to help small businesses and individuals in getting PPP loans.
"In order to obtain larger loans for certain PPP applicants, Reis and other co-conspirators allegedly fabricated documents, including payroll records, tax documentation, and bank statements," read a portion of the statement.
Investigators also say that as part of the alleged scheme, Hockridge, Reis and others expanded Blueacorn's operations through agreements with two lenders.
Stephanie Hockridge - House Select Committee for Coronavirus
Nathan Ries - House Select Committee for Coronavirus
"Blueacorn collected and reviewed PPP applications from potential borrowers on behalf of the lenders and worked with the lenders to submit applications to the SBA in exchange for a percentage of the fees that the SBA paid to the lenders for approved PPP loans," officials wrote.
In their statement, investigators also talked about a program within Blueacorn where Hockridge and others allegedly offered "a personalized service to help potential borrowers complete PPP loan applications."
"Reis and Hockridge allegedly recruited co-conspirators to work as VIPPP referral agents and coach borrowers on how to submit false PPP loan applications. In order to obtain a greater volume of kickbacks from borrowers and percentage of lender fees from the SBA, Reis, Hockridge, and their co-conspirators submitted PPP loan applications that they knew contained materially false information," read a portion of the statement.
Both Hockridge and Reis, per federal officials, are charged with one count of conspiracy to commit wire fraud, and four counts of wire fraud. They face up to 20 years in prison for each count, if convicted.
Per the indictment, a warrant will be issued for Reis, while Hockridge will be issued a summons.