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Loans that were supposed to help Americans stay afloat during the COVID-19 pandemic have gotten one couple in hot water with the law.

The lovebirds, former news anchor for Phoenix’s ABC15-TV Stephanie Hockridge-Reis and her husband Nathan Reis, are accused of submitting fraudulent applications to receive Paycheck Protection Program (PPP) loans for which they and their business were not eligible, says the Department of Justice.

Hockridge-Reis and her husband co-founded Blueacorn, a lending service provider that, ironically, was supposed to have been created to help individuals and smaller businesses obtain COVID-19 funds.

Prosecutors claim the pair “allegedly fabricated documents, including payroll records, tax documentation, and bank statements” according to a DOJ press release on the case.

“As part of the alleged scheme, Reis, Hockridge, and others expanded Blueacorn’s operations through lender service provider agreements (LSPAs) with two lenders. Under the LSPAs, Blueacorn collected and reviewed PPP applications from potential borrowers on behalf of the lenders and worked with the lenders to submit applications to the SBA in exchange for a percentage of the fees that the SBA paid to the lenders for approved PPP loans,” the release continues. “Blueacorn also had a program called ‘VIPPP’ in which Hockridge and others offered a personalized service to help potential borrowers complete PPP loan applications. Reis and Hockridge allegedly recruited co-conspirators to work as VIPPP referral agents and coach borrowers on how to submit false PPP loan applications. In order to obtain a greater volume of kickbacks from borrowers and percentage of lender fees from the SBA, Reis, Hockridge, and their co-conspirators submitted PPP loan applications that they knew contained materially false information.”

“Reis and Hockridge are charged with one count of conspiracy to commit wire fraud and four counts of wire fraud. If convicted, they face a maximum penalty of 20 years in prison on each count.”

More on the story can be viewed below via Fox 10 Phoenix:

Sierra Marlee
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