Stephanie Hockridge Convicted in $10M+ Blueacorn PPP Fraud Scheme

June 27, 2025

Bob Coleman
Founder & Publisher

Fraud Friday: Stephanie Hockridge Convicted in $10M+ Blueacorn PPP Fraud Scheme

In one of the most high-profile SBA PPP fraud cases to date, Stephanie Hockridge (AKA Stephanie Reis) was convicted by a federal jury on June 23, 2025, of conspiracy to commit wire fraud tied to a scheme that funneled millions in fraudulent PPP loans through the fintech platform Blueacorn.

Hockridge co-founded Blueacorn with her husband Nathan Reis in 2020 at the onset of PPP. While Blueacorn publicly claimed to help underserved borrowers navigate the complex PPP process, prosecutors argued the company was instead a vehicle for systematic fraud, targeting the SBA with inflated and falsified loan applications.

Fabricated Documents and Forged Tax Forms

One of the government’s most damning pieces of evidence was the discovery of multiple versions of key tax documents. FBI Special Agent Collin Friedmann testified that Hockridge’s devices contained original and altered versions of 1099 forms—one of which was fraudulently increased from $57,000 to $157,000 to qualify a borrower for a larger PPP loan.

In another instance, text messages retrieved from her phone showed Hockridge discussing her husband’s failed attempt to forge a Schedule C tax form. “That’s because Nathan is terrible at Photoshop,” she wrote, referring to a rejected application.

Kickbacks via “VIPPP” Services

The fraud wasn’t limited to document forgery. Blueacorn operated a “VIPPP” (VIP Paycheck Protection Program) service, which prosecutors say charged applicants inflated consulting fees in exchange for assistance submitting doctored documents or gaining faster approvals. These fees—sometimes deducted from the loan proceeds—served as kickbacks masked as consulting revenue.

Family Involvement: Coaching Her Own Father

In a particularly telling detail, prosecutors revealed that Hockridge had coached her own father on how to apply for three fraudulent PPP loans. She suggested he submit applications under the guise of running side businesses as an “independent consultant” or “Uber driver,” despite there being no legitimate business operations. He received approximately $41,500 in PPP funds.

Scope of the Fraud

While Blueacorn was paid over $1 billion in lender fees and facilitated more than 800,000 loans valued at $12.5 billion, the government focused its criminal case on a subset of loans that were knowingly falsified by borrowers—and, crucially, aided by Hockridge and her company. Prosecutors tied her directly to millions in fraudulent loans that misused taxpayer dollars.

She now faces up to 20 years in federal prison, with sentencing scheduled for October 10, 2025.