Fintech Star Exposed with Massive COVID Relief Fraud

Words like hypocrisy and insincerity on cards.

Former KNXV anchor Stephanie Hockridge was convicted of conspiring to launder money intended for COVID relief. Blueacorn, which Hockridge and her husband, Nathan Reis, founded, handled more than $12.5 billion in PPP loans with less than 1% of its funds going toward preventing fraud. While evading appropriate vetting procedures and charging unlawful fees, the company’s ownership obtained $250–$300 million.

From News Desk to Defendant

Stephanie Hockridge, once a familiar face to Phoenix television viewers as an anchor for ABC affiliate KNXV from 2011 to 2018, now faces potential prison time after a federal jury found her guilty of conspiracy to commit wire fraud. The verdict came after prosecutors detailed how Hockridge and her husband, Nathan Reis, exploited the Paycheck Protection Program (PPP), which was designed to help struggling businesses during the COVID-19 pandemic. Hockridge was acquitted on four other counts of wire fraud but remains in custody following the verdict.

In 2020, after leaving her broadcasting career, Hockridge co-founded the financial technology company Blueacorn in Scottsdale with Reis and other partners. The firm was established specifically to process PPP loans during the height of the pandemic. What began as an apparent entrepreneurial venture quickly evolved into what prosecutors described as a massive fraud operation that processed billions in government-backed loans with minimal oversight or verification.

Inside the PPP Fraud Operation

Court records revealed the staggering scale of Blueacorn’s operations, with the company processing over $12.5 billion in PPP loans during the pandemic. Of this enormous sum, approximately $250-$300 million went directly to the company’s ownership group. Hockridge and Reis personally obtained over $300,000 in fraudulent PPP loans, making false claims about veteran and racial status to secure preferential treatment under the program’s guidelines.

Perhaps most concerning was Blueacorn’s internal approach to processing applications. Despite receiving over $1 billion in processing fees from the government, the company spent less than 1% on fraud prevention and eligibility verification measures. Internal communications presented at trial showed staff being instructed to ignore red flags and process loans quickly, prioritizing speed over accuracy. The company established a “VIPPP” program allowing high-dollar clients to bypass standard reviews while smaller applicants faced dismissal.

Systemic Failures and Personal Enrichment

The prosecution’s case highlighted how Blueacorn systematically violated Small Business Administration rules by failing to properly vet applicants and by charging illegal fees. Evidence presented at trial showed the couple used their ill-gotten gains for personal enrichment, including relocating to Puerto Rico, reportedly to take advantage of tax benefits. The case against Hockridge represents one of the highest-profile PPP fraud prosecutions involving a public figure.

Hockridge now awaits sentencing on October 10, 2025, while her husband, Nathan Reis, is scheduled to stand trial in August on related charges. Their case exemplifies what government officials have described as unprecedented levels of fraud within COVID relief programs, with total losses estimated to approach $1 trillion across all pandemic assistance initiatives. This conviction serves as a stark reminder of how quickly emergency relief programs became targets for exploitation despite their intended purpose of supporting legitimate businesses during a national crisis.

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