Former television news anchor Stephanie Hockridge has been handed a severe ten-year prison sentence for her central role in orchestrating a massive COVID-19 relief fraud scheme that siphoned millions from government aid programs.
The Rise and Fall of a TV Personality
The 42-year-old ex-anchor from Phoenix saw her life take a dramatic turn when she was sentenced in Texas federal court on Friday. Hockridge, who transitioned from journalism to entrepreneurship, was ordered to pay nearly $64 million in restitution for her involvement in fraudulent Paycheck Protection Program loans during the pandemic's peak.
According to the Justice Department announcement, Hockridge was found guilty in June of conspiracy to commit wire fraud. She must report to prison by December 30 and will serve her time at the Federal Prison Camp in Bryan, Texas - the same minimum-security facility housing notorious figures including Elizabeth Holmes of Theranos infamy and "Real Housewives" scammer Jen Shah.
The Elaborate Fraud Operation
Hockridge and her husband, Nathan Reis, established a lending-services company called Blueacorn in 2020, positioning it as a service to help small businesses secure federal PPP loans during the chaotic early days of the COVID-19 pandemic.
However, prosecutors revealed the couple's Scottsdale-based firm operated quite differently from their public claims. The company allegedly charged borrowers illegal kickbacks based on the percentage of funds received and submitted applications to the US Small Business Administration containing knowingly fraudulent information.
In one particularly egregious example, Reis falsely claimed he was both a veteran and African American in a loan application. The scheme ultimately processed more than $63 million in fraudulent PPP loans, according to Department of Justice records.
Personal Enrichment and Systematic Deception
Investigators determined that the couple used the illicit proceeds to enrich themselves personally, betraying the purpose of the $800 billion federal loan initiative designed to help small businesses retain workers during the pandemic's economic turmoil.
Despite Hockridge's defense that her actions represented a "sincere effort to support small businesses" during unprecedented times, evidence painted a different picture. A congressional report found that Blueacorn routinely failed to properly vet applicants while charging illegal "success fees" that violated Small Business Administration regulations.
The report further detailed how Blueacorn's leadership explicitly instructed staff to prioritize speed over accuracy in processing applications, facilitating the widespread fraud.
While Hockridge received her ten-year sentence, her husband Nathan Reis accepted a plea deal in August and awaits his sentencing scheduled for December. The case serves as one of the most significant prosecutions emerging from COVID-19 relief program fraud investigations.
