Blueacorn Co-Founder Nathan Reis Pleads Guilty in PPP Loan Fraud Scandal
August 15, 2025
Bob Coleman
Founder & Publisher
Blueacorn Co-Founder Nathan Reis Pleads Guilty in PPP Loan Fraud Scandal
Nathan Reis, co-founder of Blueacorn, has pled guilty to federal charges tied to fraudulent PPP loan applications, joining his wife and fellow co-founder, former Phoenix news anchor Stephanie Hockridge, as a convicted felon.
Blueacorn was one of the largest PPP loan processors in the nation during the pandemic, earning more than $1 billion in fees from the U.S. government. The company processed roughly $4.7 billion in loans. A Senate subcommittee later determined that at least $1 billion of those loans were questionable or outright fraudulent.
Blueacorn was not a lender but a loan servicing provider. They marketed themselves as having advanced fraud detection software, yet whistleblower accounts and Senate findings revealed the company prioritized speed and large loan sizes over due diligence. At one point, underwriters were told to process 50 loans per hour, and whistleblower concerns about falsified documents were dismissed with statements like, “That’s not our concern.”
According to the Senate report, Blueacorn targeted “VIPPP” loans (loans in the $2 million range, which generated fees of $100,000 each) while smaller businesses were pushed aside. Internal communications revealed a focus on maximizing fees, with executives saying they were not concerned if applicants had been rejected by other lenders.
The report also documented fabricated payroll records, falsified tax returns, and fake bank statements that were waved through without verification. Employees even boasted about unqualified family members, including a high school senior, being brought in to approve loans.
In late 2022, the SBA suspended Blueacorn from doing business with the agency, but by then, the bulk of the fees had already been paid out. In 2024, the Department of Justice indicted Hockridge, not for Blueacorn’s systemic fraud, but for personal PPP loan fraud, including fake companies and false claims of veteran status. She was convicted in June 2025, with sentencing set for October.
Reis’s guilty plea covers similar personal misconduct. Prosecutors allege he too submitted fraudulent PPP applications for his own benefit, with fabricated entities and false statements.
The couple’s lifestyle reflected their windfall. They relocated to Puerto Rico to avoid capital gains tax, a legal move, but were photographed in a bar with stacks of cash, bragging about their financial success.
While PPP successfully prevented deeper economic collapse during the pandemic, bad actors like Blueacorn have cast a shadow over the program. Lawmakers may be more hesitant to act quickly in future crises, potentially leaving Main Street borrowers vulnerable.
Sentencing for Nathan Reis has not yet been scheduled.