Scottsdale-based Blueacorn owners charged in PPP loan fraud investigation

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

An indictment unsealed Thursday in Texas charges two people co-founders of Blueacorn in connection with the program to fraudulently obtain COVID-19 relief funds guaranteed by the U.S. Small Business Administration (SBA) through the PPP under the Coronavirus Aid, Relief, and Economic Security (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 companies, including by fabricating documents they submitted in loan applications in order to receive loan funds to which they were not entitled.

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

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

Under the LSPAs, Blueacorn 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 the fees paid by the SBA to lenders on approved PPP loans, according to the indictment .

Reis and Hockridge were 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 charge.

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

Reis was arrested this week in Puerto Rico.

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

You can read the entire indictment below