Stephanie Hockridge, a former Phoenix television news anchor turned fintech entrepreneur, has been convicted in one of the most high-profile COVID-19 relief fraud cases to date. A federal jury in the Northern District of Texas found Hockridge guilty of conspiracy to commit wire fraud, tied to a scheme involving hundreds of millions of dollars in misused pandemic relief funds.
The 42-year-old, once a household name in Arizona for her work at KNXV-TV, was acquitted on four additional counts of wire fraud. She now faces sentencing on October 10.
Hockridge’s conviction stems from her role in Blueacorn, a Scottsdale-based fintech company she co-founded with her husband, Nathan Reis, in 2020. The firm was established to process Paycheck Protection Program (PPP) loans—federal funds meant to help small businesses survive the COVID-19 pandemic. But according to prosecutors, Hockridge and Reis used the operation to enrich themselves.
While Blueacorn helped facilitate over $12.5 billion in PPP loans, between $250 million and $300 million of that money went directly into the company’s ownership, including Hockridge and Reis. The company reportedly received over $1 billion in taxpayer-funded processing fees.
According to a congressional investigation, Blueacorn spent less than 1% of its revenue on fraud prevention and just $13.7 million on eligibility verification—despite its massive intake.
Federal prosecutors revealed that Hockridge and Reis personally obtained over $300,000 in PPP funds through fraudulent applications—one of which falsely claimed that Reis was an African American veteran.
The couple used the proceeds to fund an extravagant lifestyle, including luxury residences in Puerto Rico and large quantities of cash. Congressional investigators even discovered a video filmed in a San Juan bar, dated December 21, 2021, showing the couple displaying stacks of cash.
An earlier video, geolocated to a beachfront balcony in San Juan, showed Hockridge and Reis enjoying the view from what appeared to be a luxury apartment. Public records show Reis relocated to Puerto Rico—widely seen as a tax haven for wealthy Americans—after raking in profits from Blueacorn.
The Senate investigation uncovered disturbing internal practices at Blueacorn. Employees were reportedly told to “push through” loan applications with minimal review—even those that raised red flags for fraud. Some staff processed hundreds of loans with no training, sometimes approving applications in under 30 seconds.
A so-called “VIPPP” (Very Important PPP) program allegedly allowed wealthy clients to bypass normal vetting procedures altogether.
Additionally, the firm charged illegal “success fees” to borrowers, violating rules established by the Small Business Administration.
Before entering the business world, Hockridge spent seven years as an anchor at KNXV-TV, the ABC affiliate in Phoenix. She was a well-known local personality, nominated for an Emmy and even voted “Favorite Newscaster” by Arizona Foothills Magazine. She also previously worked for CBS News Radio in London.
Her husband, Nathan Reis, is scheduled to stand trial in August 2025 on related charges, including fraud and conspiracy. Prosecutors describe him as the primary architect of Blueacorn’s operations and financial handling.
Hockridge’s conviction is one of the highest-profile fraud cases involving misuse of pandemic-era relief funds by public figures. The PPP, part of an $800 billion federal initiative, was created to prevent layoffs and stabilize the U.S. economy during the COVID-19 crisis. But watchdogs say the program was plagued by systemic failures, insider exploitation, and criminal misuse on an unprecedented scale.
Estimates suggest COVID-19 relief fraud could ultimately total $400 billion to $1 trillion, making it one of the largest financial crimes in U.S. history.
The DOJ and congressional subcommittees continue to investigate similar cases nationwide. In a statement, investigators urged the public to report fraud and abuse tied to emergency relief funds.
Sentencing for Hockridge is set for October 10, 2025.
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