Stephanie Hockridge, co-founder of the lender service provider Blueacorn, was sentenced to 10 years in federal prison for her involvement in a fraudulent scheme that resulted in over $63 million in Paycheck Protection Program (PPP) loans. The sentencing occurred on October 20, 2023, following a conviction for conspiracy to commit wire fraud, according to the U.S. Department of Justice.
Hockridge, who also operated under the alias Stephanie Reis, was part of a network that fabricated payroll records, tax documents, and bank statements to support fraudulent loan applications. Under the banner of “VIPPP,” she and her co-conspirators provided guidance to borrowers on how to submit these false applications. The evidence presented during the trial highlighted that they charged kickbacks based on a percentage of the PPP funds disbursed, violating guidelines set forth by the Small Business Administration (SBA) under the CARES Act.
The scheme, which masqueraded as a means to assist small businesses during the pandemic, ultimately diverted vital federal aid intended for legitimate relief efforts. U.S. Attorney Ryan Raybould emphasized the serious nature of the crime, stating, “These defendants exploited a national crisis to enrich themselves in this multimillion-dollar, taxpayer-funded fraud scheme.”
Investigation and Accountability
The case was investigated by several federal agencies, including the FBI and the IRS-Criminal Investigation (IRS-CI). Special Agent in Charge of the FBI Dallas office, R. Joseph Rothrock, remarked on the importance of protecting honest business owners, stating, “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 actions extend beyond her sentencing. The DOJ’s Fraud Section is actively pursuing a variety of cases related to PPP loan fraud, having already taken action against over 200 defendants. Those who suspect fraudulent activities related to COVID-19 relief programs are encouraged to report their concerns through the Justice Department’s National Center for Disaster Fraud Hotline or its official website.
The prosecution of Hockridge serves as a significant reminder of the ongoing efforts to uphold the integrity of pandemic response initiatives and the commitment to ensuring that federal aid reaches those who genuinely need it.