Stephanie Hockridge and her husband, fintech founder Nathan Reis, have watched a once-bright reputation shatter amid dramatic trial proceedings. Once celebrated for her Emmy-nominated journalism, Hockridge now faces federal prison time.
As reported by the Daily Mail, Stephanie Hockridge was convicted of one count of conspiracy to commit wire fraud in connection with Paycheck Protection Program loans. The verdict, delivered Friday in federal court, could carry a sentence of up to 20 years.
The 42-year-old former KNXV-TV anchor pleaded not guilty to all charges, yet jurors found her guilty of orchestrating a sweeping Covid relief fraud. Hockridge was acquitted on four wire fraud counts related to the same scheme. Her sentencing is slated for October 10 in Phoenix.
A federal jury reached its verdict after a two-week trial that laid bare the couple’s alleged scheme. Prosecutors said Hockridge and Reis launched Blueacorn in April 2020, promising to help small businesses navigate federal relief funds. While she faced acquittal on most counts, the single conspiracy conviction now defines her legal fate.
In court filings, prosecutors described how Blueacorn rapidly processed thousands of PPP applications with minimal oversight. “This was not about helping small businesses,” a federal official told jurors, characterizing the operation as a calculated effort to siphon emergency aid. The government said Hockridge leveraged her media fame to attract high-dollar clients.
Throughout the trial, Hockridge and her legal team maintained that she acted in good faith. Reis, who also pleaded not guilty, echoed that they believed they were guiding legitimate borrowers through an unprecedented crisis. Their attorneys argued that any missteps reflected the chaotic rollout of the PPP program, not intentional fraud.
Photographic evidence played a key role in swaying jurors, including an image of Hockridge in a marble bathtub clutching bundles of $100 bills. The prosecution also played a video shot at a luxury beachfront apartment in Puerto Rico, underscoring the couple’s lavish spending. Those scenes contrasted starkly with the financial struggles faced by genuine small businesses.
The couple’s relocation to Puerto Rico became a focal point, highlighting their efforts to minimize tax liabilities on overseas investment. Prosecutors asserted that the beachfront high-rise served as both a getaway and a symbol of ill-gotten gains. Defense attorneys countered that the move was a legal tax strategy unrelated to the PPP loans.
A congressional subcommittee report revealed Blueacorn processed over $12.5 billion in loans while disbursing $300 million in processing fees to owners, including Hockridge. The firm allocated less than 1 percent of revenue—just $8.6 million—to detect and prevent fraud. Lawmakers have cited those figures as evidence of systemic weaknesses in emergency aid oversight.
Jurors reviewed internal Blueacorn communications that referred to a clandestine “VIPPP” list, fast-tracking lucrative applications past standard verification steps. Staff messages urged employees to “push through” questionable loan requests, dismissing warnings with blunt language. Those directives illustrated a corporate culture prioritizing profit over honesty.
Court documents exposed fabricated claims in dozens of applications, including one stating Reis served in the military and another of minority-business status—both government checks later disproved. Prosecutors said the couple submitted false payroll records, tax returns and bank statements to satisfy SBA requirements. The evidence painted a picture of intentional deception at every turn.
Further testimony detailed how Hockridge and Reis charged illegal “success fees” in violation of Small Business Administration rules. They allegedly struck kickback agreements with certain banks in exchange for processing guarantees. The indictment described a web of interstate wire transfers used to obfuscate the origin of funds.
Stephanie Hockridge, 42, and her husband, Nathan Reis, 46, stand convicted in a federal fraud scheme that exploited the Paycheck Protection Program during Covid-19. Their Scottsdale-based fintech firm, Blueacorn, allegedly processed billions in PPP loans under false pretenses. Prosecutors say the couple capitalized on an emergency fund meant to save jobs.
Hockridge faces up to 20 years behind bars when she is sentenced on October 10 in Phoenix, while Reis will answer similar charges at his August trial. B
oth have indicated plans to appeal the verdicts, arguing the chaotic nature of pandemic relief created honest misunderstandings. Outside court, supporters have rallied, framing the case as a cautionary tale of bureaucratic mismanagement.
