Former Phoenix News Anchor Stephanie Hockridge-Reis And Her Husband Are Going To Prison For Operating A Billion Dollar PPP Scam
A glamorous Phoenix news anchor Stephanie Hockridge-Reis is and her husband are going to prison. The pair operated a brazen multi-million dollar PPP fraud. convicted in a billion-dollar Covid cash scheme
The pair will likely get the maximum sentence. The court saw outrageous text messages Hockridge-Reis sent to her husband joking about cheating taxpayers.
The FBI accused the couple of submitting false applications for Payment Protection Program loans during the height of the pandemic. The Arizona Republic reports Hockridge-Reis sent her husband a text that said:
“This is us trying to apply for free money — when we don’t quite qualify. lol,”
Hockridge-Reis, 42, pleaded not guilty. However, a federal jury convicted her of one count of conspiracy to commit wire fraud in June this year. A jury acquitted her of four counts of wire fraud.
Prosecutors allege the couple coached borrowers to submit fraudulent PPP loan applications.
The former KNXV-TV anchor claimed her actions were a “sincere effort to support small businesses.”
The court had scheduled Reis to stand trial this month. However, he entered into a plea deal last week. The court will render a sentence in November.
A federal jury found Hockridge-Reis guilty of conspiracy following the end of her trial in June.
The Case Centers On The Couple’s Fintech Company Blueacorn.
The case centered on Blueacorn. The couple founded the fintech company in April 2020.
Blueacorn claimed to help small businesses navigate the PPP loan process during the Covid crisis.
In reality, investigators say the company became a fraud factory.
A congressional subcommittee found Blueacorn processed over $12.5 billion in loans. In addition, the company also pocketed up to $300 million for its ownership group. The subcommittee also found Blueacorn spent virtually nothing on fraud prevention.
Many small businesses struggled to survive during the pandemic. Yet, the Reis family were living large. They flaunted their wealth by filming videos with bricks of cash. They also flaunted Rolex watches and their vacations on the balconies of tropical locales.
The couple fled to a luxury beachfront apartment in Puerto Rico. They relocated there to avoid US capital gains tax.
The jury also saw internal messages encouraging staff to ‘push through’ loan applications and disregard red flags. They also exploited a so-called ‘VIPPP’ list that allowed high-dollar clients to bypass security checks.
Another text cited by prosecutors reportedly described her as ‘the MVP’ of the operation.
Emmy-nominated Hockridge-Reis once graced magazine covers as “Arizona’s Favorite Newscaster.”
Now, she will appear in court for sentencing on October 10. She faces up to 20 years in prison for the conspiracy conviction.
Former Phoenix News Anchor And Her Husband Got Greedy
The couple submitted fraudulent applications by claiming Reis claimed he was an African American military veteran. As a result of lying on the application, They received at least $300,000 in personal PPP funds.
They also violated SBA rules by charged borrowers illegal “success fees.”
Prosecutors say the couple struck kickback deals with banks by collecting percentages of loans that were funded.
Blueacorn’s practices were so brazen that Congress launched a formal investigation. The investigation revealing that the company collected over $1 billion in taxpayer-funded processing fees. However, it only spent $8.6 million on fraud prevention, less than 1 percent of its intake.
Employees with zero financial training were processing hundreds of loans in under 30 seconds each.
Federal attorneys also introduced an indictment alleging that the couple fabricated payroll records and tax documents. In addition, the feds alleged the couple fabricated bank statements.
In one application, Hockridge-Reis and Reis claimed to own an Amazon business generating six figures.
Another loan was issued to a nonexistent company they claimed had multiple employees.
The couple allegedly rerouted money through a chain of bank accounts. They used interstate wires to disguise their tracks.
Federal investigators say that Reis played a central role in overseeing Blueacorn’s day-to-day operations. They say he helped foster the toxic culture that prioritized profit above all else.
Reis plead guilty to one count of conspiracy to commit wire fraud last week.
He is scheduled to be sentenced on November 21, 2025. He faces a maximum penalty of 20 years in prison.
Did The Former Phoenix News Anchor And Her Husband Conspire With Two Other PPP Fraudsters?
The couple’s case is also connected to Eric and Anthony Karnezis. The Karnezises pleaded guilty to PPP fraud in a related case earlier this year.
Eric Karnezis agreed to pay between $25 million and $65 million in restitution. However, Anthony agreed to repay between $3.5 million and $9.5 million.
The convictions underscore what federal watchdogs have called the largest fraud wave in US history.
Read More About PPP Fraudsters On MFI-Miami.com.
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