Latest news with #NathanReis
Daily Mail
5 days ago
- Business
- Daily Mail
Former TV anchor facing years in prison over shocking Covid lies
A glamorous TV news anchor facing years in prison over shocking Covid lies has learned her fate. Stephanie Hockridge has been found guilty of one count of conspiracy to commit wire fraud. She had pleaded not guilty but could now be jailed for decades. Hockridge was acquitted of four counts of wire fraud. The scandal involved photos of her holding cash in a bathtub, luxury beachfront apartments, and a billion-dollar fintech scheme that left American taxpayers footing the bill. A federal jury found the 42-year-old former KNXV-TV anchor guilty concluding that she orchestrated a vast scheme to exploit the Paycheck Protection Program (PPP) during the height of the pandemic. Hockridge's sentencing is scheduled for October 10, and she faces up to 20 years in prison for the conspiracy conviction. The verdict caps a dramatic fall from grace for the Emmy-nominated journalist who once graced magazine covers as 'Arizona's Favorite Newscaster.' But behind the studio lights and on-air smiles, federal prosecutors say Hockridge was running a Covid cash-grab empire alongside her husband, fintech founder Nathan Reis, 46. The US government's case centered on Blueacorn, the fintech firm Hockridge co-founded with Reis in April 2020 just weeks after leaving her anchor job at ABC15. The company claimed to help small businesses navigate the PPP loan process, a lifeline created by Congress to keep workers employed during the Covid crisis. In reality, investigators say Blueacorn became a fraud factory. According to a congressional subcommittee, the company processed over $12.5 billion in loans and pocketed up to $300 million for its ownership group, including Hockridge, while spending virtually nothing on fraud prevention. Another text cited by prosecutors reportedly described her as 'the MVP' of the operation. According to court filings, Hockridge and her husband submitted fraudulent PPP applications for themselves, including one claiming Reis was both African American and a military veteran - both lies. The couple received at least $300,000 in personal PPP funds. They also charged borrowers illegal 'success fees,' violating SBA rules, and even struck kickback deals with banks, collecting percentages of loans that were funded, prosecutors alleged. Blueacorn's practices were so brazen that Congress launched a formal investigation, revealing that while the company collected over $1 billion in taxpayer-funded processing fees, it spent only $8.6 million on fraud prevention - less than 1 percent of its intake. One congressional report summarized the company's internal directive succinctly: Speed over accuracy. Some employees, with zero financial training, were reportedly processing hundreds of loans in under 30 seconds each. 'This was not about helping small businesses,' a federal official close to the investigation said. 'It was about siphoning off a national crisis for personal gain.' Hockridge transformation from trusted journalist to convicted felon has gripped Arizona's media community. She spent seven years as a respected anchor for KNXV-TV, and previously worked for CBS News Radio in London. Her career accolades include an Emmy nomination and features in local lifestyle publications. But prosecutors painted a starkly different portrait in court: not a broadcaster-turned-entrepreneur, but a co-conspirator in one of the biggest pandemic profiteering cases to date. The couple allegedly rerouted money through a chain of bank accounts, using interstate wires to disguise their tracks. 'Nathan Reis and Stephanie Hockridge… knowingly devised and intended to devise the scheme to defraud,' the indictment states. 'To obtain money and property by means of materially false and fraudulent pretenses.' At the heart of the prosecution's case was an alleged attitude of impunity. Prosecutors said Hockridge once described the PPP program as '$100 billion of free money'. Her husband's trial is scheduled for August where he faces similar charges.
Daily Mail
5 days ago
- Business
- Daily Mail
Glamorous TV anchor facing years in prison over shocking Covid lies learns her fate
A glamorous TV news anchor facing years in prison over shocking Covid lies has learned her fate. Stephanie Hockridge-Reis was found guilty of one count of conspiracy to commit wire fraud. She had pleaded not guilty but could now be jailed for decades. Hockridge was acquitted of four counts of wire fraud. The scandal involved photos of her holding cash in a bathtub, luxury beachfront apartments, and a billion-dollar fintech scheme that left American taxpayers footing the bill. A federal jury found the 42-year-old former KNXV-TV anchor guilty concluding that she orchestrated a vast scheme to exploit the Paycheck Protection Program (PPP) during the height of the pandemic. Hockridge's sentencing is scheduled for October 10, and she faces up to 20 years in prison for the conspiracy conviction. The verdict caps a dramatic fall from grace for the Emmy-nominated journalist who once graced magazine covers as ' Arizona 's Favorite Newscaster.' But behind the studio lights and on-air smiles, federal prosecutors say Hockridge was running a Covid cash-grab empire alongside her husband, fintech founder Nathan Reis, 46. The US government's case centered on Blueacorn, the fintech firm Hockridge co-founded with Reis in April 2020 just weeks after leaving her anchor job at ABC15. The company claimed to help small businesses navigate the PPP loan process, a lifeline created by Congress to keep workers employed during the Covid crisis. In reality, investigators say Blueacorn became a fraud factory. According to a congressional subcommittee, the company processed over $12.5 billion in loans and pocketed up to $300 million for its ownership group, including Hockridge , while spending virtually nothing on fraud prevention. While many small businesses struggled to survive during the pandemic, Hockridge and Reis were living large, filming videos with bricks of cash, flaunting Rolex watches, and vacationing on the balconies of tropical locales. Among the most damning evidence: A bathtub photo showing Hockridge holding stacks of $100 bills to her ears like a phone. A video taken from a luxury beachfront apartment in Puerto Rico, where the couple had relocated to avoid U.S. capital gains tax. Internal messages encouraging staff to 'push through' loan applications with no regard for red flags. A so-called 'VIPPP' list that allowed high-dollar clients to bypass security checks. 'Who the f*** cares,' Hockridge allegedly said in one message about improperly rejected applicants. 'We're not the first bank to decline borrowers who deserve to be funded… They can go elsewhere.' Another text cited by prosecutors reportedly described her as 'the MVP' of the operation. According to court filings, Hockridge and Reis submitted fraudulent PPP applications for themselves, including one claiming Reis was both African American and a military veteran - both lies. The couple received at least $300,000 in personal PPP funds. They also charged borrowers illegal 'success fees,' violating SBA rules, and even struck kickback deals with banks, collecting percentages of loans that were funded, prosecutors alleged. Blueacorn's practices were so brazen that Congress launched a formal investigation, revealing that while the company collected over $1 billion in taxpayer-funded processing fees, it spent only $8.6 million on fraud prevention - less than 1 percent of its intake. One congressional report summarized the company's internal directive succinctly: Speed over accuracy. Some employees, with zero financial training, were reportedly processing hundreds of loans in under 30 seconds each. 'This was not about helping small businesses,' a federal official close to the investigation said. 'It was about siphoning off a national crisis for personal gain.' Hockridge's transformation from trusted journalist to convicted felon has gripped Arizona's media community. She spent seven years as a respected anchor for KNXV-TV, and previously worked for CBS News Radio in London. Her career accolades include an Emmy nomination and features in local lifestyle publications. But prosecutors painted a starkly different portrait in court: not a broadcaster-turned-entrepreneur, but a co-conspirator in one of the biggest pandemic profiteering cases to date. During the trial, federal attorneys introduced a superseding indictment alleging that Hockridge and Reis fabricated payroll records, tax documents, and bank statements. In one application, the couple 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, using interstate wires to disguise their tracks. 'Nathan Reis and Stephanie Hockridge… knowingly devised and intended to devise the scheme to defraud,' the indictment states. 'To obtain money and property by means of materially false and fraudulent pretenses.' At the heart of the prosecution's case was an alleged attitude of impunity. Prosecutors said Hockridge once described the PPP program as '$100 billion of free money.' Her husband's trial is scheduled for August where he faces similar charges. Reis, who reportedly moved to San Juan, Puerto Rico, in the aftermath of the scheme, has denied all allegations and also pleaded not guilty. Federal investigators say that Reis played a central role in overseeing Blueacorn's day-to-day operations and financial distributions - and helped foster the toxic culture that prioritized profit above all else. The case is also connected to Eric and Anthony Karnezis, two men who earlier this year pleaded guilty to PPP fraud in a related case. Eric Karnezis agreed to pay between $25 million and $65 million in restitution; Anthony agreed to repay between $3.5 million and $9.5 million. Hockridge's conviction underscores what federal watchdogs have called the largest fraud wave in US history - fueled by emergency Covid aid programs and exploited by thousands of bad actors. The Paycheck Protection Program, meant to protect workers, became a cash cow for predators. Hockridge will be sentenced in October.
Yahoo
5 days ago
- Business
- Yahoo
Ex-TV news anchor Stephanie Hockridge convicted in massive scheme to fraudulently obtain COVID relief funds
Stephanie Hockridge, a former Phoenix news anchor-turned-fintech entrepreneur, has been convicted of conspiracy to commit wire fraud in a federal case involving hundreds of millions of dollars in COVID relief funds. A jury in the Northern District of Texas found Hockridge guilty on one count of conspiracy to commit wire fraud. She was acquitted on four additional counts of wire fraud. Sentencing is scheduled for Oct. 10. Hockridge's conviction was announced on Friday. According to federal prosecutors and investigative reports, Hockridge and her husband, Nathan Reis, fraudulently obtained over $300,000 in Paycheck Protection Program (PPP) loans for themselves, including one application that falsely claimed he was a veteran and an African American. The couple's Scottsdale-based fintech firm, Blueacorn, which they co-founded in 2020, processed over $12.5 billion in PPP loans — with somewhere between $250 million and $300 million going to the company's ownership, including Hockridge. Blueacorn received over $1 billion in taxpayer-funded processing fees for facilitating PPP loans but spent less than 1% ($8.6 million) on fraud prevention and only $13.7 million on eligibility verification, according to a congressional investigation. The PPP was an $800 billion federal loan initiative launched in 2020 to help small businesses keep workers employed during the COVID-19 pandemic. It was part of a broader effort — including grants, tax credits and emergency loans — aimed at stabilizing the US economy and preventing mass business closures and layoffs. Investigators alleged that the couple used the proceeds to enrich themselves personally. Congress said it obtained a video created by Reis and Hockridge showing off large amounts of cash in a bar on Dec. 21, 2021. According to public records, Reis relocated to San Juan, Puerto Rico, which has no capital gains tax, following his work at Blueacorn. An Oct. 8, 2021, video obtained by congressional staffers which was geolocated to San Juan showed Hockridge and Reis on the balcony of a luxury beachfront apartment. According to a congressional report, Blueacorn routinely failed to properly vet applicants and charged illegal 'success fees' to borrowers — violating Small Business Administration rules. The congressional report detailed how Blueacorn's leadership instructed staff to prioritize speed over accuracy. Internal messages showed reviewers were told to 'push through' questionable applications, ignore red flags, and skip identity checks unless fraud was 'extremely obvious.' Some staff processed hundreds of loans with no training — sometimes within 30 seconds each. The subcommittee also uncovered the existence of a 'VIPPP' program that allowed high-dollar clients to bypass standard review protocols. Founders dismissed smaller loan applicants with phrases like 'delete them,' 'who f–king cares' and 'they go elsewhere.' Hockridge, 42, was once a familiar face in Arizona households. She spent seven years as an anchor at KNXV-TV, the ABC affiliate in Phoenix, and had previously worked as a reporter for CBS News Radio in London. She was nominated for an Emmy and named 'Favorite Newscaster' by Arizona Foothills Magazine. Reis is scheduled to stand trial in August 2025 on related charges. Prosecutors allege he played a lead role in directing the company's operations and handling its financial distributions. Hockridge's conviction marks one of the highest-profile PPP fraud cases to date involving a public figure. Fraud related to COVID-19 relief programs was unprecedented in US history, with losses estimated in the hundreds of billions — possibly up to $1 trillion. The PPP, Economic Injury Disaster Loans and unemployment insurance programs were especially vulnerable — with watchdogs reporting widespread misuse, insider abuse and systemic failures in fraud prevention. The Post has sought comment from Hockridge and Reis.
Daily Mail
11-06-2025
- Business
- Daily Mail
Saucy bathtub photo at center of ultra-glamorous former news anchor's fraud trial
A photo of a woman in a bathtub holding stacks of money to her ears is among the intriguing evidence expected at the fraud trial of a glamorous former ABC anchor. Stephanie Hockridge-Reis is appearing at District Court in Fort Worth, Texas, this week charged with one count of conspiracy to commit wire fraud and four counts of wire fraud. She had pleaded not guilty and if convicted faces up to 100 years in prison. The presenter is accused of working with her husband, Nathan Reis, to fraudulently claim government funds during the Covid pandemic by submitting false applications for Payment Protection Program loans on behalf of themselves and their business, Blueacorn. Mr Reis is set to face the same charges at a separate trial in August. An exhibit list filed by prosecutors last week offers a tantalizing hint at the trial to come. Evidence expected alongside the bathtub photo include pictures of stacks of $100 bills, a Rolex watch, and text messages that allegedly labeled Hockridge-Reis as 'the MVP'. The trial started on Monday with a superseding indictment filed last month alleging the couple 'and their coconspirators fabricated documents including payroll records, tax documents, and bank statements'. Hockridge-Reis and Reis founded Blueacorn in April 2020 after Hockridge-Reis left her post at the ABC affiliate Channel 15 KNXV-TV, a job she held for seven years. The couple's company was founded with aim to assist small businesses and individuals in obtaining PPP loans. The US Small Business Administration guaranteed aid to keep businesses afloat during the COVID-19 pandemic through PPP under the Coronavirus Aid, Relief and Economic Security Act. The couple are accused of recruited people to work as referral agents who are said to have coached borrowers on how to submit false PPP loan applications. The DOJ have claimed the couple charged their clients with illegal fees for their services based on a percentage of the funds received. The new indictment also accuses the couple of charging banks a 'kickback based on the percentage of their loans that were funded'. Loans the couple and their coconspirators are said to have received include one for $145,000 after 'falsely stating that entity had employees'. Other applications for loans, prosecutors say, included the pair stating that they had an Amazon business that earned over $100,000, with prosecutors saying they received more than $20,000 in that loan. Prosecutors said they would receive the loans into a bank account that would then transfer the funds using interstate wires to another bank account. The indictment added: 'Nathan Reis and Stephanie Hockridge, along with others known and unknown, knowingly devised and intended to devise the scheme to defraud.' Prosecutors said this was to 'obtain money and property by means of materially false and fraudulent pretenses'. Prosecutors said that a review of the loans showed what the couple were allegedly willing to do for the money, including a claim that Reis stated in an application that he was African American and a veteran. Prosecutors allege that other evidence will reveal how Hockridge-Reis described the PPP as '$100 billion dollars of free money.' Although the PPP loans were set up for small businesses, Hockridge-Reis allegedly told her staff 'Who the f*** cares. We're not the first bank to decline borrowers who deserve to be funded... They can go elsewhere.' The exhibit list also mentions an association with a Eric Karnezis and his brother Anthony Karnezis. The two brothers both pleaded guilty earlier this year to conspiring to commit wire fraud. As part of their plea agreements, Eric Karnezis agreed to pay between $25 million and $65 million in restitution to victims, and Anthony Karnezis agreed to pay between $3.5 million and $9.5 million to them. Hockridge and her husband have both pleaded not guilty to all five of the charges, if convicted the pair could face up to 20 years in prison for each count. Reis's trial is scheduled for August.
