FORT WORTH, TX — One of the founders of Blueacorn, a Scottsdale-based financial tech firm, has agreed to plead guilty in a federal fraud case involving COVID-era business relief loans.
Nathan Reis, the husband of former ABC15 news anchor Stephanie Hockridge, will plead guilty to conspiracy to commit wire fraud. In June, Hockridge was convicted on the same charge by a jury in Fort Worth, TX.
Reis was supposed to stand trial later this month. His plea agreement is dated August 6. He's scheduled to appear for a rearraignment on Monday.
From April 2020 until May 2021, Reis and others knowingly agreed to submit applications with false representations to obtain Paycheck Protection Program (PPP) loans, according to court records. Those loans were submitted to several financial institutions, including Capital Plus Financial in Bedford, Texas.
Court records show Reis has admitted that he and coconspirators used fabricated tax documents, altered bank statements, and other materials with misrepresentations to obtain forgivable loans for themselves and others. As part of the conspiracy, Reis admitted to charging borrowers fees based on a percentage of the loan amounts that were funded, according to a federal court filing this week.
According to Blueacorn, the company facilitated applications for $12 billion in PPP loans. Their advertising offered online loan applications and processing for independent contractors, self-employed people, and small business owners. Prosecutors focused most of their attention on loans for Reis, Hockridge, and their close associates, as well as larger loans that were funneled through Blueacorn's VIPPP program.
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VIPPP provided personalized application assistance to select clients.
A congressional subcommittee found Blueacorn received more than $1 billion in taxpayer-funded processing fees.
It transferred nearly $300 million in profits to its owners while only spending $8.6 million, less than 1% of the fees it received for its PPP work on fraud prevention.
After they left Blueacorn, Reis and Hockridge moved to Puerto Rico. They were indicted on five federal charges last November.
According to the plea agreement, Reis's prison sentence cannot exceed 20 years. He may also be subject to asset forfeiture, restitution, and a fine up to $250,000.
Hockridge, who worked for ABC15 from 2011 to 2018, is scheduled to be sentenced in October.
You can reach Melissa by email at melissa.blasius@abc15.com or call 602-803-2506. Follow her on X (formerly Twitter) @MelissaBlasius or Facebook.
