Once a familiar face delivering nightly news to Arizona viewers, Stephanie Hockridge-Reis is now making headlines for all the wrong reasons.
The Emmy-nominated former KNXV-TV anchor has been convicted in a billion-dollar fintech fraud case that prosecutors say shamelessly exploited pandemic relief funds meant for struggling businesses.
A Text Message That Said It All
If there was any doubt about the couple’s intent, a text from Hockridge-Reis to her husband, Nathan Reis, during the pandemic said plenty: “This is us trying to apply for free money — when we don’t quite qualify. lol.”
The message emerged in court as Nathan struck a plea deal over his role in the scam.
The Scheme Behind the Smiles
The couple co-founded a fintech company called Blueacorn in April 2020, just weeks after Hockridge-Reis left her anchor job.
The business claimed it was helping small companies secure Paycheck Protection Program (PPP) loans — a government initiative designed to keep workers employed during Covid.
In reality, investigators say it became a high-speed fraud machine.
Federal prosecutors allege they coached borrowers to submit fake loan applications, charged illegal “success fees,” cut kickback deals with banks, and even filed false PPP applications for themselves — including one where Nathan falsely claimed to be African American and a military veteran.
The Money and the Lifestyle
While many small businesses were fighting to survive, the Reis family was living extravagantly.
Prosecutors presented videos of them playing with bricks of cash, flaunting Rolex watches, and relaxing in luxury apartments in Puerto Rico — a move that also allowed them to avoid US capital gains tax.
Photos even showed Hockridge-Reis lounging in a bathtub filled with $100 bills.
Speed Over Accuracy
According to a congressional investigation, Blueacorn processed over $12.5 billion in PPP loans and collected up to $300 million for its owners.
Shockingly, less than 1 percent of that revenue — just $8.6 million — was spent on fraud prevention.
Internal messages shown in court revealed a “push through” culture that encouraged staff to approve loan applications in seconds without flagging suspicious details.
A so-called “VIPPP” list let high-dollar clients skip security checks, and employees with no financial training were processing hundreds of loans in under 30 seconds each.
The Evidence That Swayed the Jury
During her trial, prosecutors introduced fabricated payroll records, fake tax documents, and bogus bank statements allegedly created by the couple.
In one application, they claimed to own a six-figure Amazon business.
Another loan was linked to a completely fake company with imaginary employees.
Hockridge-Reis was convicted in June of conspiracy to commit wire fraud but acquitted of four individual wire fraud counts.
She faces up to 20 years in prison at her October 10 sentencing.
Nathan, who pleaded guilty this week to conspiracy, will be sentenced November 21 and faces the same maximum penalty.
A Wider Web of Covid Fraud
The Reis case is connected to two other men, Eric and Anthony Karnezis, who also pleaded guilty in a related PPP loan fraud scheme.
Eric agreed to repay up to $65 million, while Anthony faces up to $9.5 million in restitution.
A National Crisis Turned Into a Cash Cow
Federal watchdogs have called pandemic aid fraud the largest wave of financial crime in US history — and the Reis case is one of the most brazen examples yet.
What was supposed to protect jobs during a global emergency became, in the words of one federal official, “a chance for predators to siphon off a national crisis for personal gain.”