Co-founder of Blueacorn admits to conspiring to commit wire fraud
In a shocking turn of events, Nathan Reis, co-founder of the fintech company Blueacorn, pleaded guilty to conspiracy to commit wire fraud in connection with a scheme to collect COVID-19 relief money. His wife, Stephanie Hockridge-Reis, was found guilty of conspiracy to commit wire fraud after a week-long trial in June.
Blueacorn, co-founded by the couple in 2020, played a significant role in processing Paycheck Protection Program (PPP) loans during the COVID-19 pandemic, facilitating more than $12.5 billion in loans and reportedly earning over $1 billion in taxpayer-funded processing fees.
However, Blueacorn became entangled in a major PPP fraud scandal. The company spent less than 1% of its revenue on fraud prevention and minimal amounts on eligibility verification despite its vast volume of loan processing. Hockridge-Reis and Reis were accused of fraudulently obtaining over $300,000 in PPP loans themselves, with Reis falsely claiming military veteran and African American status to qualify.
The Department of Justice (DOJ) stated that Reis and his co-conspirators fabricated documents that falsified income and payroll figures to receive loan funds for which they were ineligible. The House subcommittee report, released in 2022, detailed that Blueacorn pursued higher fees by prioritizing high-dollar loans and applying less scrutiny to them. The report quoted Blueacorn's ownership as directing reviewers to prioritize 'monster loans [that] will get everyone paid', while urging staff to dismiss applications for smaller loans.
Following the report's release, Blueacorn and fintech Womply were barred from working with the SBA. Reis is scheduled to be sentenced on Nov. 21, while Hockridge-Reis faces up to 20 years in prison.
This article is a part of our Fintech coverage and was written by Gabrielle Saulsbery on June 25, 2025. It serves as a reminder of the ongoing commitment of the Department of Justice to bring to justice those who steal from the public fisc to enrich themselves.
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