Founder of Lender Service Provider Convicted for Role in Multimillion-Dollar PPP Fraud Scheme

Source: U.S. Department of Justice

Founder of Lender Service Provider Convicted for Role in Multimillion-Dollar PPP Fraud Scheme

Monday, June 23, 2025
For Immediate Release
Office of Public Affairs

A federal jury convicted Stephanie Hockridge, a founder of the lender service provider Blueacorn, on Friday in connection with a scheme to fraudulently obtain tens of millions of dollars in COVID-19 relief money guaranteed by the U. S. Small Business Administration (SBA) through the Paycheck Protection Program (PPP).

According to court documents and evidence presented at trial, Hockridge, also known as Stephanie Reis, 42, of Rio Grande, Puerto Rico, and previously of Arizona, conspired with others to submit false and fraudulent PPP loan applications, including by fabricating documents that falsified income and payroll in order to receive loan funds for which they were not eligible.

“This defendant exploited a national emergency to personally profit from a taxpayer-funded program intended to support vulnerable individuals and small businesses,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “This conviction demonstrates the Department’s commitment to holding individuals accountable for defrauding the government and wasting taxpayer money.”

“During a time of crisis in our country, this defendant abused the generosity of the American people by stealing money dedicated to the survival of small businesses to fraudulently enrich herself,” said Acting U. S. Attorney Nancy E. Larson for the Northern District of Texas. “We are proud of the diligent work of our law enforcement partners to hold her accountable and bring her to justice. Make no mistake, our efforts to bring such fraudsters to justice are ongoing.”

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Read more: https://www.justice.gov/opa/pr/founder-lender-service-convicted-role-multimillion-dollar-ppp-fraud-scheme