A former television news personality and her husband find themselves at the center of a multimillion-dollar COVID relief scandal that shocked the Arizona media landscape.

According to Daily Mail, Stephanie Hockridge-Reis, 41, and Nathan Reis, 45, are facing multiple fraud charges for allegedly orchestrating a scheme to defraud the government's Paycheck Protection Program through their company Blueacorn.

The Department of Justice unveiled serious allegations against the couple on Friday, charging them with one count of conspiracy to commit wire fraud and four counts of wire fraud. Each count carries a potential sentence of up to 20 years in prison. Their company, established in April 2020, claimed to assist small businesses in securing PPP loans but allegedly engaged in fraudulent practices.

Former News Anchor's Company Under Federal Investigation

Federal investigators discovered that Hockridge-Reis, who spent seven years at ABC affiliate Channel 15 KNXV-TV, and her husband allegedly submitted falsified documents in loan applications.

The couple's actions reportedly extended beyond their own applications, as they recruited agents to coach borrowers on submitting false PPP loan applications. Their company collected and reviewed applications on behalf of lenders, securing a percentage of the fees paid to these financial institutions.

The investigation revealed shocking details about the couple's alleged approach to the federal aid program. Evidence presented by prosecutors showed that Reis reportedly claimed to be African American and a veteran in one application, highlighting the lengths to which the couple allegedly went to secure funds. Internal communications painted a troubling picture of their attitude toward the program's intended purpose.

Hockridge-Reis allegedly made revealing statements about the program to her staff, as documented in the investigation. According to court documents, she described the PPP as "$100 billion dollars of free money" and displayed a dismissive attitude toward proper loan distribution.

Illegal Fee Structure Raises Additional Concerns

The couple's business model allegedly violated Small Business Administration rules by attempting to charge applicants a 10 percent fee for successful loan procurement.

This practice directly contradicted the program's regulations designed to protect small businesses during the COVID-19 pandemic. The Department of Justice claims the couple's company collected these illegal fees while knowingly processing fraudulent applications.

Investigators uncovered evidence suggesting the couple established a network of referral agents who assisted in the scheme. These agents allegedly helped coach borrowers on submitting false applications, creating a systematic approach to defrauding the government program. The operation's scope extended beyond individual applications, encompassing a broader network of participants.

The case highlights the government's ongoing efforts to combat fraud related to COVID-19 relief programs. The Coronavirus Aid, Relief and Economic Security Act established the PPP to provide crucial support to legitimate small businesses during the pandemic's economic downturn.

Legal Proceedings Move Forward

Hockridge-Reis received a summons to appear in a Dallas, Texas court on November 25. The legal proceedings mark a dramatic turn for the former news anchor, whose career in media spanned nearly a decade before co-founding Blueacorn. Attempts to reach the couple's legal representation for comment proved unsuccessful.

The case represents part of a larger initiative by federal authorities to prosecute individuals who allegedly exploited COVID-19 relief programs. The Department of Justice continues to investigate and prosecute cases of fraud related to pandemic assistance programs, emphasizing the government's commitment to protecting taxpayer funds.

The investigation's findings suggest a systematic approach to circumventing program rules and regulations. Prosecutors allege the couple's actions violated federal law and potentially harmed legitimate small businesses seeking assistance during the pandemic.

Case Resolution Awaits Federal Court Decision

The former Arizona news anchor and her husband face serious consequences if convicted of the charges brought against them by federal prosecutors. Their case highlights the continuing aftermath of pandemic-era fraud investigations targeting misuse of government relief funds.

The couple's alleged scheme to defraud the Paycheck Protection Program through their company Blueacorn has resulted in multiple federal charges that could lead to decades in prison. As they prepare to face these charges in a Dallas federal court, their case serves as a reminder of the ongoing efforts to hold accountable those accused of exploiting pandemic relief programs.

Why This Story Matters

This case indeed matters as it highlights the need for constant vigilance and integrity, particularly in programs meant to assist during crises. It reminds the community of the importance of transparency and accountability, especially when public funds are involved.

In conclusion, the case against Stephanie Hockridge-Reis and Nathan Reis illustrates a grave misuse of public trust and funds meant for pandemic relief. Their actions not only jeopardized the financial integrity of the PPP but also betrayed the trust of the public and the small businesses it intended to serve. Their upcoming trials will likely serve as a stern warning about the severe consequences of such fraudulent activities.