URGENT UPDATE: Stephanie Hockridge, co-founder of the lender service provider Blueacorn, has been sentenced to 10 years in federal prison for her involvement in a massive fraud scheme that illegally obtained over $63 million in Paycheck Protection Program (PPP) loans. The sentence was issued on October 20, 2023, as confirmed by the U.S. Department of Justice.
Hockridge, also known by the alias Stephanie Reis, was found guilty of conspiracy to commit wire fraud. The fraudulent activities included fabricating payroll records, tax documents, and bank statements to support false loan applications, directly violating SBA guidelines under the CARES Act. She and her co-conspirators, operating under the misleading “VIPPP” brand, even coached borrowers on how to submit these fraudulent applications.
The evidence presented during the trial revealed a shocking operation where kickbacks were charged based on a percentage of the PPP funds received. This scheme siphoned vital federal aid away from small businesses desperately needing help during the pandemic.
U.S. Attorney Ryan Raybould condemned Hockridge’s actions, stating, “These defendants exploited a national crisis to enrich themselves in this multimillion-dollar, taxpayer-funded fraud scheme.” This urgent message echoes the commitment of federal agencies, including the FBI and IRS-CI, to uphold the integrity of pandemic response initiatives.
In a strong statement, FBI Dallas Special Agent in Charge R. Joseph Rothrock emphasized the agency’s dedication to protecting legitimate business owners, asserting, “The public can rest assured that the FBI is committed to holding accountable those who attempt to defraud the United States government and steal opportunities from honest, hardworking business owners.”
The ramifications of Hockridge’s sentencing extend beyond her case. The DOJ’s Fraud Section is actively prosecuting a wider range of PPP loan fraud cases, having already taken action against over 200 defendants. The investigation into these fraudulent activities underscores the government’s relentless effort to combat COVID-19-related fraud.
For individuals who suspect fraudulent activities or seek more information on the government’s ongoing efforts, the Justice Department’s National Center for Disaster Fraud Hotline and website remain available for reporting suspicious cases.
Stay tuned for more developments as federal authorities continue their crackdown on PPP fraud, ensuring justice is served and aiding those genuinely impacted by the pandemic.
