Blueacorn Co-Founder Stephanie Hockridge Receives 10-Year Sentence for PPP Fraud, Owes $65 Million

December 12, 2025

Bob Coleman
Founder & Publisher

Blueacorn Co-Founder Stephanie Hockridge Receives 10-Year Sentence for PPP Fraud, Owes $65 Million

Stephanie Hockridge, co-founder of Blueacorn, was sentenced to 120 months in federal prison for her role in one of the largest PPP loan fraud schemes uncovered during the pandemic.

A federal jury convicted Hockridge in June 2025 of conspiracy to commit wire fraud after evidence showed that Blueacorn operated a production-style system that coached applicants, drafted falsified Schedule C tax documents, and generated a surge of PPP loans at the maximum sole-proprietor benefit of $20,832. The number appeared repeatedly because borrowers were encouraged to claim $100,000 in income, a figure accepted early in the pandemic when IRS verification systems were shut down and lenders relied on draft tax returns.

Prosecutors argued that roughly 90 percent of the $100 million in loans brought in by a key Blueacorn intermediary were fraudulent, and that Hockridge personally profited from each loan processed. Although Congress reported Blueacorn had collected over a billion dollars in fees, the court adopted what it described as a conservative loss calculation. Hockridge was ordered to pay $65 million in restitution.

Hockridge is scheduled to report to the Federal Correctional Institution in Bryan, Texas, on December 30 at 2 p.m. Defense counsel has asked the court to allow her to remain on release pending appeal and to consider staggered sentences for Hockridge and her husband, Nathan Reis, who faces sentencing on December 18. Their argument cites an infant child, Hockridge’s compliance with electronic monitoring, and the claim that she poses no future risk because the PPP program no longer exists. Prosecutors opposed the request.

Testimony also revealed personal attempts by Hockridge to secure a fraudulent PPP loan for her mother, a request her father refused after stating the income figures were false and that he would not sign a fabricated return. The court cited such evidence in rejecting challenges to the loss amount and in concluding that the scheme’s structure depended on knowingly falsifying borrower income.

Hockridge will serve two years of supervised release following her prison term and must comply with strict reporting, residency, employment, and financial requirements. A portion of her income, along with 50 percent of any bonuses, gifts, or windfalls, will be applied toward restitution.

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