Former Phoenix news anchor and fintech entrepreneur, Stephanie Hockridge, has been found guilty of conspiracy related to wire fraud in a federal case involving the Covid Relief Fund.
A jury in Northern Texas determined that Hockridge was culpable on one count of conspiracy to commit wire fraud, although she was acquitted of four additional charges. Sentencing is set for October 10th.
The announcement regarding Hockridge’s conviction was made on Friday.
Hockridge and her husband, Nathan Reiss, were accused by federal prosecutors of fraudulently securing over $300,000 through the Paycheck Protection Program (PPP), including a loan application where Reiss falsely claimed to be both a veteran and African American.
The couple co-founded a fintech company, BlueaCorn, in Scottsdale in 2020, which processed more than $12.5 billion in PPP loans.
BlueaCorn reportedly received over $1 billion in taxpayer-funded processing fees for PPP loans. However, only a small fraction—about 1%, or $8.6 million—was allocated to fraud prevention, with $13.7 million spent on confirming eligibility, according to a Congressional investigation.
The PPP represents an $800 billion federal loan initiative that began in 2020 to help small businesses retain employees during the pandemic.
This initiative was part of a larger strategy that included grants, tax credits, and emergency loans to stabilize the economy and avert widespread business closures and layoffs.
Investigators claimed the couple misused substantial revenue for personal enrichment. Congress revealed they had secured a video featuring Hockridge and Reiss flaunting significant cash at a bar in December 2021. Public records indicate that Reiss relocated to San Juan, Puerto Rico, following his time at BlueaCorn, as the locale has no capital gains tax.
A video tracked to San Juan, dated October 8, 2021, showcased the couple on the balcony of an upscale beachfront apartment.
According to a Congressional report, BlueaCorn had significant operational issues, including charging illegal “success fees” to borrowers and violating management regulations.
The report also indicated that staff members were instructed to prioritize speed over accuracy in processing applications, often bypassing necessary identity checks unless fraud was conspicuously evident. Some employees processed numerous loans without any training.
Furthermore, evidence surfaced regarding a “VIPPP” program that allowed privileged clients to circumvent standard review procedures, and the founder used dismissive phrases towards small loan applicants, such as “delete” and “who cares.”
Hockridge, aged 42, was a well-known figure in Arizona media, serving as an anchor for KNXV-TV, an ABC affiliate, for seven years and previously worked as a reporter for CBS News Radio in London.
She received an Emmy nomination and was recognized as a “Favorite Newscaster” by Arizona Foothills Magazine.
Reiss is set to face court in August 2025 concerning accusations that he led the company’s operations and oversaw its financial dealings.
The ruling against Hockridge is among the most notable fraud cases related to the PPP involving public figures.
The fraud connected to the Covid-19 Relief Program is unprecedented in U.S. history, with losses potentially totaling hundreds of millions, or even up to $1 trillion.
Programs like the PPP, Economic Injury Disaster Loans (EIDLs), and unemployment insurance were especially susceptible to fraud, demonstrating significant failures in protective measures.
Comments are being sought from both Hockridge and Reiss.
