The Department of Justice (DOJ) is still untangling the financial webs that were woven by criminals when the federal money was flowing at the height of the pandemic.
Case in point, a former news presenter from Phoenix was found guilty by a federal jury in Texas of conspiring to cheat the government of COVID-19 relief funds following a weeklong trial, as The Daily Mail reported.
Stephanie Hockridge and her husband, Nathan Reis, co-founded Blueacorn, which was a financial technology company that directed businesses in applying for the government Paycheck Protection Program.
Before her 2018 retirement from television, Hockridge spent seven years as a news anchor for Phoenix's ABC15.
“This defendant exploited a national emergency to personally profit from a taxpayer-funded program intended to support vulnerable individuals and small businesses,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division.
“This conviction demonstrates the Department’s commitment to holding individuals accountable for defrauding the government and wasting taxpayer money.”
She and Reis were said to have falsified paperwork in order to seek loans totaling hundreds of thousands of dollars that they did not qualify for.
They allegedly went on to establish a business called "VIPPP" where they advised clients on how to submit false PPP loan applications in exchange for kickbacks proportional to the amount of the loans, as stated in their indictment.
A jury convicted Hockridge of one count of conspiracy to commit wire fraud; however, she got off on the other four charges.
A maximum of twenty years behind bars is in her future after she receives sentencing in the next few months.
“During a time of crisis in our country, this defendant abused the generosity of the American people by stealing money dedicated to the survival of small businesses to fraudulently enrich herself,” said Acting U. S. Attorney Nancy E. Larson for the Northern District of Texas. “We are proud of the diligent work of our law enforcement partners to hold her accountable and bring her to justice. Make no mistake, our efforts to bring such fraudsters to justice are ongoing.”
Hockridge said she sought to expose and prevent fraud, claiming she was misled. Her legal team attempted to justify her behavior by saying it was "a sincere effort to support small businesses during a time of unprecedented need" and blamed her husband for keeping her in the dark.
Reis will face a trial in August of this year. The charges against him included four counts of wire fraud and one count of conspiracy to commit wire fraud.
“This verdict is a victory for justice, accountability, and the American public,” said Special Agent in Charge Christopher J. Altemus Jr. of the IRS Criminal Investigation (IRS-CI) Dallas Field Office. “In a time of crisis, the Paycheck Protection Program was created as a lifeline to keep small businesses afloat and families fed."
