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A former glamorous news anchor, found guilty in a billion-dollar Covid cash scheme, sent her husband a daring text joking about exploiting government funds meant for taxpayers.
Stephanie Hockridge-Reis’s appalling message to her husband Nathan Reis emerged as Reis took a plea deal over his part in the Covid-19 funding scam.
The couple were accused of submitting false applications for Payment Protection Program (PPP) loans during the height of the pandemic.
‘This is us trying to apply for free money — when we don’t quite qualify. lol,’ she texted Reis, 47, according to a federal indictment referenced by The Arizona Republic.
Hockridge-Reis, 42, maintained a plea of not guilty; however, a federal jury found her guilty of one count of conspiracy to commit wire fraud in June this year. She was acquitted on four other counts of wire fraud.
Prosecutors allege the couple coached borrowers to submit fraudulent PPP loan applications and received kickbacks once the funds were secured.
The former KNXV-TV anchor defended her actions as a ‘sincere effort to support small businesses’ in dealing with a chaotic government problem during a period of ‘unprecedented need’.
Stephanie Hockridge-Reis allegedly admitted in a text to her husband knowing that they were ‘trying to apply for free money — when we don’t quite qualify.’
Stephanie Hockridge-Reis and her husband Nathan Reis (pictured together) have been found guilty guilty in a billion-dollar fintech scheme
Reis was scheduled to stand trial this month but entered into a plea deal on Monday, court records show. He will be sentenced in November.
A federal jury found Hockridge-Reis guilty of conspiracy following the end of her trial in June.
The case centered on Blueacorn, the fintech firm the couple co-founded in April 2020, just weeks after Hockridge-Reis left her anchor job.
Blueacorn claimed to assist small businesses in navigating the PPP loan process, a crucial measure established by Congress to maintain employment during the Covid crisis.
In reality, investigators say the company became a fraud factory.
According to a congressional subcommittee, Blueacorn processed over $12.5 billion in loans and pocketed up to $300 million for its ownership group, while spending virtually nothing on fraud prevention.
While many small businesses struggled to survive during the pandemic, the Reis family were living large, filming videos with bricks of cash, flaunting Rolex watches, and vacationing on the balconies of tropical locales.
The court was shown photos of her holding stacks of $100 bills in a bathtub and video captured at a luxury beachfront apartment in Puerto Rico, where the couple had relocated to avoid US capital gains tax.
Federal prosecutors say Hockridge-Reis was running a Covid cash-grab empire alongside her husband, fintech founder Nathan Reis, obtaining hundreds of millions of dollars in PPP loans
The couple are seen holding hands as they leave court during Hockridge-Reis’ trial in June
The jury also saw internal messages encouraging staff to ‘push through’ loan applications with no regard for red flags and a so-called ‘VIPPP’ list that allowed high-dollar clients to bypass security checks.
‘Who the f*** cares,’ she 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.
Hockridge-Reis, an Emmy-nominated journalist who once graced magazine covers as ‘Arizona’s Favorite Newscaster’, will appear in court for sentencing on October 10. She faces up to 20 years in prison for the conspiracy conviction.
According to court filings, the couple submitted fraudulent PPP applications for themselves, including one claiming Reis was both African American and a military veteran – both lies. They 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.
The Emmy-nominated journalist who once graced magazine covers as ‘Arizona’s Favorite Newscaster’ left her anchor job at KNXV-TV during the early months of the pandemic in 2020
She spent seven years as a respected anchor for the Phoenix-based ABC affiliate and previously worked for CBS News Radio in London. Her career accolades include an Emmy nomination and features in local lifestyle publications
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.’
During the trial, federal attorneys also introduced a superseding indictment alleging that the couple fabricated payroll records, tax documents, and bank statements.
In one application, Hockridge-Reis and Reis 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.
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.
Reis plead guilty to one count of conspiracy to commit wire fraud on Monday.
He is scheduled to be sentenced on November 21 and also faces a maximum penalty of 20 years in prison.
During the pandemic, Hockridge-Reis and her husband were living large, filming videos with bricks of cash, flaunting Rolex watches, and vacationing on the balconies of tropical locales
The couple’s case was 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.
The convictions underscore 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.
