Scottsdale-based Blueacorn Founders Charged in PPP Loan Fraud Investigation

The founders of Blueacorn, a Scottsdale company that processed Paycheck Protection Program (PPP) loan applications during the pandemic, have been indicted. The indictment lists four counts of wire fraud and one count of conspiracy to commit wire fraud.

An indictment unsealed Thursday in Texas charges two Blueacorn co-founders in connection with a scheme to fraudulently obtain Covid-19 relief money guaranteed by the U.S. Small Business Administration (SBA) through the PPP under the Coronavirus Aid, Relief, and Economic Security program. coronavirus (CARES). Act.

The document states that Nathan Reis, 45, and his wife, Stephanie Hockridge Reis, 41, a former ABC15 news anchor, allegedly submitted false and fraudulent PPP loan applications on behalf of themselves and their businesses, including through fabrication documents. that they submitted in their loan applications to obtain loan funds for which they were not eligible.

The indictment alleges that the couple co-founded Blueacorn in April 2020 to help small businesses and individuals obtain PPP loans. For the larger loans, Reis and other co-conspirators allegedly fabricated documents, including paystubs, tax documentation and bank statements. Reis and Hockridge allegedly charged borrowers illegal kickbacks equal to a percentage of the funds received.

Reis, Hockridge and others are accused of expanding Blueacorn’s operations through lender service provider agreements (LSPAs) with two lenders.

Blueacorn, under the LSPA, collected and reviewed PPP applications from potential borrowers on behalf of lenders and worked with them to submit applications to the SBA in exchange for a percentage of fees that the SBA paid lenders for approved PPP loans, according to the indictment.

Race and Hockridge are each charged with one count of conspiracy to commit wire fraud and four counts of wire fraud.

If convicted, they face a maximum penalty of 20 years in prison on each count.

ABC15 previously reported that the couple had been living a lavish lifestyle in Puerto Rico for the past few years.

The flight was grounded in Puerto Rico this week.

Hockridge will make his first appearance in a Texas federal courtroom on Monday, according to federal documents.

Read the full text of the charges below.