FORT WORTH, TX — A former Valley newscaster on trial for wire fraud "made up numbers" and "doctored documents" for business clients seeking government loans, according to prosecutors.
During opening statements Thursday morning, federal prosecutors said Stephanie Hockridge and co-conspirators "lied to get money."
Hockridge, who worked as an ABC15 news anchor from 2011 to 2018, and her husband, Nate Reis, along with others, started Blueacorn, a financial tech company, in Scottsdale in 2020.
Prosecutors said the couple and their co-conspirators submitted fraudulent Paycheck Protection Program applications to obtain forgivable COVID-19 relief loans for businesses and individuals.
"This is a case of greed pure and simple," said Jason Lamm, a Valley defense attorney who's worked on federal white collar crime cases. He's not been involved in the Blueacorn case.
According to Blueacorn, the company facilitated the applications for $12 billion in Paycheck Protection Program loans. Hockridge and Reis reportedly walked away with $300 million.
Hockridge's defense team argued that the government's case focuses on a small portion of loans, about 20 borrowers out of hundreds of thousands. During opening statements, her attorney Richard Finneran said it was the borrowers who had to certify they provided correct information to qualify for the loans, and he said other people involved in the loan process had responsibility for fraud detection.
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The couple had relocated to Puerto Rico, and last November, they were indicted on one count of conspiracy to commit wire fraud and four counts of wire fraud. Both pleaded not guilty. They are being tried separately. Hockridge went to trial first.
"It's going to be really lean and mean trial, Lamm said. "There will be a few federal agents who discuss the evidence and how they pursued the investigation, and perhaps, most significantly, there will be several cooperating witnesses."
Prosecution witnesses include another Blueacorn founder, James Flores. While testifying Thursday afternoon, he was asked about whether he had direct knowledge that Hockridge processed fraudulent loans under Blueacorn's 'VIPPP' program.
"We were all partners in the business," and "we all knew," Flores said.
Two brothers from Sedona are also scheduled to testify. Anthony and Eric Karnezis have already pleaded guilty to the charges against them. They were accused of working in conjunction with Blueacorn to process more than $100 million in fraudulent PPP loans.
In court filings Wednesday, Hockridge's attorneys said she took steps to detect and discourage suspicious applications. The defense attorneys also said Hockridge acted "in good faith," working to help borrowers she believed were eligible to secure the maximum loan amounts permitted.
