Ex-TV news anchor Stephanie Hockridge convicted in – Business News
Stephanie Hockridge, a former Phoenix news anchor turned fintech entrepreneur, has been convicted of conspiracy to commit wire fraud in a federal case involving a whole bunch of hundreds of thousands of {dollars} in COVID reduction funds.
A jury in the Northern District of Texas discovered Hockridge guilty on one rely of conspiracy to commit wire fraud. She was acquitted on 4 extra counts of wire fraud. Sentencing is scheduled for Oct. 10.
Hockridge’s conviction was introduced on Friday.
Stephanie Hockridge is a former tv news anchor who labored in Phoenix. Facebook / Stephanie Hockridge
Hockridge was convicted of one rely of conspiracy to commit wire fraud. Facebook / Stephanie Hockridge
According to federal prosecutors and investigative reviews, Hockridge and her husband, Nathan Reis, fraudulently obtained over $300,000 in Paycheck Protection Program (PPP) loans for themselves, together with one utility that falsely claimed he was a veteran and an African American.
The couple’s Scottsdale-based fintech firm, Blueacorn, which they co-founded in 2020, processed over $12.5 billion in PPP loans — with someplace between $250 million and $300 million going to the company’s possession — together with Hockridge.
Blueacorn acquired over $1 billion in taxpayer-funded processing charges for facilitating PPP loans however spent much less than 1% ($8.6 million) on fraud prevention and solely $13.7 million on eligibility verification, in keeping with a congressional investigation.
Hockridge and her husband, Nathan Reis, are alleged to have fraudulently obtained a whole bunch of hundreds of thousands of {dollars} in PPP loans. KPNX
The PPP was an $800 billion federal loan initiative launched in 2020 to help small companies keep employees employed during the COVID-19 pandemic.
It was half of a broader effort — together with grants, tax credit, and emergency loans — aimed toward stabilizing the US financial system and stopping mass business closures and layoffs.
Investigators alleged that the couple used the proceeds to complement themselves personally.
Congress stated it obtained a video created by Reis and Hockridge displaying off massive quantities of money in a bar on Dec. 21, 2021. According to public information, Reis relocated to San Juan, Puerto Rico, which has no capital good points tax, following his work at Blueacorn.
An Oct. 8, 2021, video obtained by congressional staffers which was geolocated to San Juan confirmed Hockridge and Reis on the balcony of a luxurious beachfront residence.
According to a congressional report, Blueacorn routinely didn’t correctly vet candidates and charged unlawful “success fees” to debtors — violating Small Business Administration guidelines.
The couple is alleged to have pocketed wherever between $250 million and $300 million in revenue as a outcome of the scheme. Facebook / Stephanie Hockridge
The congressional report detailed how Blueacorn’s management instructed workers to prioritize velocity over accuracy.
Internal messages confirmed reviewers had been advised to “push through” questionable functions, ignore crimson flags, and skip identification checks except fraud was “extremely obvious.” Some workers processed a whole bunch of loans with no coaching — typically within 30 seconds every.
Reis is alleged to have fraudulently obtained loans by claiming he was black. Facebook / Stephanie Hockridge
The subcommittee additionally uncovered the existence of a “VIPPP” program that allowed high-dollar shoppers to bypass customary review protocols. Founders dismissed smaller loan candidates with phrases like “delete them,” “who f–king cares” and “they go elsewhere.”
Hockridge, 42, was as soon as a acquainted face in Arizona households. She spent seven years as an anchor at KNXV-TV, the ABC affiliate in Phoenix, and had beforehand labored as a reporter for CBS News Radio in London.
She was nominated for an Emmy and named “Favorite Newscaster” by Arizona Foothills Magazine.
Reis is scheduled to stand trial in August 2025 on associated costs. Prosecutors allege he performed a lead function in directing the company’s operations and handling its financial distributions.
Hockridge spent seven years anchoring the news at KNXV-TV in Phoenix. Facebook / Stephanie Hockridge
Hockridge’s conviction marks one of the highest-profile PPP fraud instances up to now involving a public determine.
Fraud associated to COVID-19 reduction applications was unprecedented in US historical past, with losses estimated in the a whole bunch of billions — presumably up to $1 trillion.
The PPP, Economic Injury Disaster Loans (EIDL) and unemployment insurance coverage applications had been particularly susceptible — with watchdogs reporting widespread misuse, insider abuse and systemic failures in fraud prevention.
The Post has sought remark from Hockridge and Reis.
