The cofounders of Blueacorn, a Scottsdale-based lender service provider, have been indicted in connection with a scheme to fraudulently obtain COVID-19 relief money through the Paycheck Protection Program, authorities announced last week.

The indictment was unsealed in the Northern District of Texas charging Nathan Reis, 45, and Stephanie Hockridge, 41, also known as Stephanie Reis, both of Puerto Rico and previously of Arizona.

They allegedly submitted false and fraudulent PPP loan applications on behalf of themselves and their businesses, including by fabricating documents that they submitted in their loan applications in order to receive loan funds for which they were not eligible, according to a release from the U.S. Department of Justice.

The indictment also alleges the married couple co-founded Blueacorn in April 2020 “purportedly to assist small businesses and individuals in obtaining PPP loans.

“In order to obtain larger loans for certain PPP applicants, Reis and other co-conspirators allegedly fabricated documents, including payroll records, tax documentation and bank statements. Reis and Hockridge allegedly charged borrowers illegal kickbacks based on a percentage of the funds received.”

Reis and Hockridge are charged with one count of conspiracy to commit wire fraud and four counts of wire fraud. If convicted, they face a maximum penalty of 20 years in prison on each count, the release stated.

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