A married couple who founded a PPP lender service provider is facing a federal indictment in connection with a scheme to fraudulently obtain COVID relief money.
According to court documents, Nathan Reis, 45, and Stephanie Hockridge, 41, both of Puerto Rico, and previously of Arizona, are alleged to have submitted false and fraudulent PPP loan applications on behalf of themselves and their businesses.
Reis and Hockridge launched a company called Blueacorn in April 2020, at the outset of the COVID pandemic, purportedly to assist small businesses and individuals in obtaining 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. Reis and Hockridge allegedly charged borrowers illegal kickbacks based on a percentage of the funds received.
As part of the alleged scheme, Reis, Hockridge, and others expanded Blueacorn’s operations through lender service provider agreements with two lenders. Under the LSPAs, 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.
Blueacorn also had a program called “VIPPP” in which Hockridge and others 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.
Reis and Hockridge are 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.
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Chris Graham
