Stephanie Hockridge, a former TV anchor from Phoenix, was handed a 10-year sentence last Friday for her role in a fraud scheme that swiped more than $63 million in COVID-19 relief funds. FOX 7 Austin reports that Hockridge, 42, must also pay restitution of over $63 million following her June 20 conviction for conspiracy to commit wire fraud.
Along with her husband, Nathan Reis, who pled guilty in August, Hockridge co-founded the company Blueacorn in April 2020, which was disguised as a helpful service to support small businesses in securing Paycheck Protection Program (PPP) loans. According to The Guardian, the duo, with their accomplices, created false documents like payroll records, bank statements, and tax filings to inflate PPP loan amounts and line their own pockets.
Compounded by a so-called "VIPPP" service, as reported by FOX 7 Austin, Hockridge implemented a referral program that enlisted agents to coach prospective borrowers into submitting doctored loan applications. This service sought to boost the illegitimate profits through kickbacks based on inflated loan sizes and lender fees from the Small Business Administration.
During a national crisis where these funds were a lifeline for struggling businesses, Hockridge's actions displayed a gross exploitation of the system. "These defendants exploited a national crisis to enrich themselves in this multimillion-dollar, taxpayer-funded fraud scheme," U.S. Attorney Ryan Raybould commented on the case, FOX 7 Austin reported.
The scheme was busted by a team including IRS Criminal Investigation, the Special Inspector General for Pandemic Recovery, and the FBI, among others. Slack messages between Hockridge and her cohorts, cited in a congressional report, revealed a disregard for the integrity of the PPP program, with Hockridge instructing to "delete" incriminating messages and expressing an indifference to smaller, non-VIPPP loan applicants with a profane "who [expletive] cares," according to details found by The Guardian.
Investigations into the fraud continue as the judicial system processes the serious implications of Hockridge and Reis's scheme.
