A glamorous TV information anchor dealing with years in jail over surprising Covid lies has realized her destiny.
Stephanie Hockridge-Reis was discovered responsible of 1 rely of conspiracy to commit wire fraud. She had pleaded not responsible however may now be jailed for many years. Hockridge was acquitted of 4 counts of wire fraud.
The scandal concerned photographs of her holding money in a bath, luxurious beachfront flats, and a billion-dollar fintech scheme that left American taxpayers footing the invoice.
A federal jury discovered the 42-year-old former KNXV-TV anchor responsible concluding that she orchestrated an enormous scheme to use the Paycheck Safety Program (PPP) throughout the peak of the pandemic.
Hockridge’s sentencing is scheduled for October 10, and she or he faces as much as 20 years in jail for the conspiracy conviction.
The decision caps a dramatic fall from grace for the Emmy-nominated journalist who as soon as graced journal covers as ‘Arizona‘s Favourite Newscaster.’
However behind the studio lights and on-air smiles, federal prosecutors say Hockridge was operating a Covid cash-grab empire alongside her husband, fintech founder Nathan Reis, 46.
The US authorities’s case centered on Blueacorn, the fintech agency Hockridge co-founded with Reis in April 2020 simply weeks after leaving her anchor job at ABC15.
Stephanie Hockridge-Reis was discovered responsible of 1 rely of conspiracy to commit wire fraud. She had pleaded not responsible however may now be jailed for many years
Federal prosecutors say Hockridge was operating a Covid cash-grab empire alongside her husband, fintech founder Nathan Reis, acquiring tons of of thousands and thousands of {dollars} in PPP loans
Hockridge may very well be seen carrying an ankle monitor as she left court docket throughout her trial
The corporate claimed to assist small companies navigate the PPP mortgage course of, a lifeline created by Congress to maintain staff employed throughout the Covid disaster.
In actuality, investigators say Blueacorn grew to become a fraud manufacturing facility.
In response to a congressional subcommittee, the corporate processed over $12.5 billion in loans and pocketed as much as $300 million for its possession group, together with Hockridge , whereas spending nearly nothing on fraud prevention.
Whereas many small companies struggled to outlive throughout the pandemic, Hockridge and Reis have been dwelling massive, filming movies with bricks of money, flaunting Rolex watches, and vacationing on the balconies of tropical locales.
Among the many most damning proof:
- A bath photograph displaying Hockridge holding stacks of $100 payments to her ears like a cellphone.
- A video taken from a luxurious beachfront residence in Puerto Rico, the place the couple had relocated to keep away from U.S. capital positive aspects tax.
- Inside messages encouraging employees to ‘push by’ mortgage functions with no regard for pink flags.
- A so-called ‘VIPPP’ record that allowed high-dollar shoppers to bypass safety checks.
Hockridge is seen leaving court docket following the conclusion of her trial. She might be sentenced in October
Through the pandemic, Hockridge and Reis have been dwelling massive, filming movies with bricks of money, flaunting Rolex watches, and vacationing on the balconies of tropical locales
The couple’s Scottsdale-based fintech agency processed over $12.5 billion in PPP loans with round $250 million to $300 million going to the corporate’s house owners, together with Hockridge
In response to court docket filings, Hockridge and Reis submitted fraudulent PPP functions for themselves, together with one claiming Reis was each African American and a navy veteran – each lies. The couple are pictured in 2013
‘Who the f*** cares,’ Hockridge allegedly stated in a single message about improperly rejected candidates. ‘We’re not the primary financial institution to say no debtors who should be funded… They will go elsewhere.’
One other textual content cited by prosecutors reportedly described her as ‘the MVP’ of the operation.
In response to court docket filings, Hockridge and Reis submitted fraudulent PPP functions for themselves, together with one claiming Reis was each African American and a navy veteran – each lies.
The couple obtained at the least $300,000 in private PPP funds.
Additionally they charged debtors unlawful ‘success charges,’ violating SBA guidelines, and even struck kickback offers with banks, gathering percentages of loans that have been funded, prosecutors alleged.
Blueacorn’s practices have been so brazen that Congress launched a proper investigation, revealing that whereas the corporate collected over $1 billion in taxpayer-funded processing charges, it spent solely $8.6 million on fraud prevention – lower than 1 % of its consumption.
One congressional report summarized the corporate’s inside directive succinctly: Velocity over accuracy.
Some staff, with zero monetary coaching, have been reportedly processing tons of of loans in below 30 seconds every.
‘This was not about serving to small companies,’ a federal official near the investigation stated. ‘It was about siphoning off a nationwide disaster for private achieve.’
Hockridge’s transformation from trusted journalist to convicted felon has gripped Arizona’s media neighborhood.
She spent seven years as a revered anchor for KNXV-TV, and beforehand labored for CBS Information Radio in London.
Her profession accolades embody an Emmy nomination and options in native way of life publications.
Stephanie Hockridge is a former tv information anchor who labored in Phoenix
Hockridge is seen leaving court docket throughout her trial, holding palms together with her husband, Nathan Reis
However prosecutors painted a starkly totally different portrait in court docket: not a broadcaster-turned-entrepreneur, however a co-conspirator in one of many largest pandemic profiteering circumstances thus far.
Through the trial, federal attorneys launched a superseding indictment alleging that Hockridge and Reis fabricated payroll data, tax paperwork, and financial institution statements.
In a single utility, the couple claimed to personal an Amazon enterprise producing six figures.
One other mortgage was issued to a nonexistent firm they claimed had a number of staff.
The couple allegedly rerouted cash by a series of financial institution accounts, utilizing interstate wires to disguise their tracks.
‘Nathan Reis and Stephanie Hockridge… knowingly devised and supposed to plan the scheme to defraud,’ the indictment states.
‘To acquire cash and property by way of materially false and fraudulent pretenses.’
On the coronary heart of the prosecution’s case was an alleged angle of impunity.
Prosecutors stated Hockridge as soon as described the PPP program as ‘$100 billion of free cash.’
Her husband’s trial is scheduled for August the place he faces comparable costs.
The glamorous former tv information anchor that was identified to thousands and thousands of viewers in Phoenix
Hockridge left her TV anchor job at ABC15 throughout the early months of the pandemic in 2020
The couple obtained at the least $300,000 in private PPP funds
Reis, who reportedly moved to San Juan, Puerto Rico, within the aftermath of the scheme, has denied all allegations and in addition pleaded not responsible.
Federal investigators say that Reis performed a central position in overseeing Blueacorn’s day-to-day operations and monetary distributions – and helped foster the poisonous tradition that prioritized revenue above all else.
The case can be related to Eric and Anthony Karnezis, two males who earlier this yr pleaded responsible to PPP fraud in a associated case.
Eric Karnezis agreed to pay between $25 million and $65 million in restitution; Anthony agreed to repay between $3.5 million and $9.5 million.
Hockridge’s conviction underscores what federal watchdogs have known as the biggest fraud wave in US historical past – fueled by emergency Covid assist applications and exploited by 1000’s of unhealthy actors.
The Paycheck Safety Program, meant to guard staff, grew to become a money cow for predators.
Hockridge might be sentenced in October.
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