END-OF-SUMMER UPDATE: Latest Developments in the Blueacorn Fraud Case

As summer winds down, here’s a streamlined summary of the Blueacorn fraud saga. Highlights include Stephanie Hockridge’s conviction, Nathan Reis’s guilty plea, and the Karnezis brothers’ involvement in related PPP loan fraud schemes—all reflecting how Blueacorn evolved from an emergency lending facilitator into a vehicle for large-scale exploitation of pandemic relief funds.

Stephanie Hockridge Convicted

On June 23, 2025, federal prosecutors secured a conviction against Blueacorn co-founder Stephanie Hockridge (formerly a TV news anchor) for conspiracy to commit wire fraud. Evidence revealed she fabricated payroll records and tax forms, coached family members on fraudulent applications, and managed a “VIPPP” service that fast-tracked high‑dollar loans in exchange for kickbacks. Sentencing is set for October 10, 2025.

Nathan Reis Pleads Guilty

On August 11, 2025, and reported widely on August 15, co-founder Nathan Reis pled guilty to conspiracy to commit wire fraud. Prosecutors say he helped run a scheme involving falsified PPP loan applications and borrower fees tied to loan amounts. Sentencing is scheduled for November 21, 2025, and he faces up to 20 years in prison.

Karnezis Brothers’ Guilty Plea

On May 2, 2025, Eric and Anthony Karnezis admitted guilt in a PPP fraud scheme tied to Blueacorn. Eric submitted around 1,300 fraudulent applications totaling $178 million and netted about $3 million in fees; Anthony handled over 140, securing nearly $4 million in loans and pocketing $957,000. Assets including a multimillion‑dollar home and luxury items were forfeited. Watch coverage on YouTube here.

How the Fraud Unfolded (at a Glance)

Blueacorn, launched in April 2020 by Hockridge and Reis, processed billions in PPP loans and profited immensely—reportedly earning over $1 billion in fees while spending less than 1% on fraud prevention. The company prioritized speed and large loans, particularly the “VIPPP” tier, suppressing red flags and instructing staff to “push through” suspicious applications. Founders enriched themselves personally, purchasing luxury items and relocating to Puerto Rico to minimize taxes.

Coleman’s Last 5 YouTube Videos on Blueacorn

Blueacorn Co-Founder Nathan Reis Pleads Guilty in PPP Loan Fraud Scandal (August 15, 2025)
Details Reis’s guilty plea, situating it as part of a broader DOJ effort to hold the couple accountable in the largest PPP fraud revelations to date.

Stephanie Hockridge Convicted in $10B+ Blueacorn PPP Fraud Scheme (June 27, 2025)
Covers Hockridge’s conviction, cementing her role in orchestrating Blueacorn’s multi-billion dollar PPP loan fraud scheme.

Brothers Guilty Plea in a Blueacorn-Related Fraud (May 2, 2025)
Details the guilty plea of two brothers tied to fraudulent loans, illustrating how Blueacorn’s oversight failures enabled abuse of the PPP program.

“We’re Not the Fraud Police”: Inside Blueacorn’s $12B PPP Loan Fraud (April 18, 2025)
Examines Blueacorn’s internal culture of neglect, with employees told “We’re not the fraud police,” and the company’s choice to favor high-fee loans over procedural integrity.

BlueAcorn Scandal: PPP Fraud Allegations (December 20, 2024)
Introduces early allegations against Blueacorn, foreshadowing the DOJ’s eventual exposure of one of the largest PPP fraud scandals in US history.