From News Anchor to Federal Inmate: The Dramatic Fall of Stephanie Hockridge
Former television presenter Stephanie Hockridge faces a decade behind bars after being convicted of orchestrating a massive Covid-19 relief fraud scheme that siphoned millions from taxpayer-funded programmes. The 42-year-old ex-KNXV-TV anchor will report to Federal Prison Camp Bryan in Texas on December 30 to begin her sentence.
Hockridge has been ordered to pay $64 million in restitution for fraudulently obtained loans during the pandemic, marking a stunning downfall for the Emmy-nominated journalist once celebrated as 'Arizona's Favorite Newscaster.'
The Blueacorn Fraud Factory
Prosecutors revealed that Hockridge and her husband, Nathan Reis, established Blueacorn in April 2020, just weeks after she left her anchor position at ABC15. The fintech company claimed to assist small businesses with Paycheck Protection Program (PPP) applications - the crucial lifeline created by Congress to support workers during the health crisis.
In reality, federal investigators described Blueacorn as a 'fraud factory' that processed over $12.5 billion in loans while pocketing up to $300 million for its ownership group. Shockingly, congressional investigations revealed the company spent less than 1% of its intake on fraud prevention, allocating only $8.6 million despite collecting over $1 billion in taxpayer-funded processing fees.
According to court documents, the company's internal directive prioritised 'speed over accuracy,' with some untrained employees processing hundreds of loans in under 30 seconds each.
Lavish Lifestyle Funded by Fraud
While legitimate small businesses struggled to survive pandemic restrictions, Hockridge and her husband flaunted their illicit wealth through social media posts showing off Rolex watches, tropical vacations, and concerningly, videos featuring bricks of cash. Damning evidence presented at trial included photos of Hockridge posing in a bathtub while flashing wads of banknotes.
Prosecutors highlighted Hockridge's apparent contempt for the scheme's victims, citing one message where she allegedly stated: 'Who the f*** cares. We're not the first bank to decline borrowers who deserve to be funded… They can go elsewhere.'
The couple's fraudulent activities extended to personal PPP applications, including one that falsely claimed Reis was both African American and a military veteran. They received at least $300,000 in personal PPP funds through these deceptive means.
Systematic Scheme Unravels
Federal attorneys demonstrated that Hockridge and her husband fabricated payroll records, tax documents, and bank statements to support fraudulent loan applications. In one instance, they claimed to own an Amazon business generating six-figure revenues, while another loan was issued to a completely fictitious company with multiple non-existent employees.
The couple meticulously disguised their tracks by rerouting money through chains of bank accounts and using interstate wires. Prosecutors emphasised that Hockridge once described the PPP programme as '$100 billion of free money,' revealing her attitude toward the relief funds.
Nathan Reis, convicted on the same charges earlier this year, awaits sentencing in November. The case has sent shockwaves through Arizona's media community, where Hockridge was previously respected during her seven-year tenure at KNXV-TV and earlier work for CBS News Radio in London.
Hockridge will serve her sentence at the same facility housing notorious sex trafficker Ghislaine Maxwell, according to reports from the New York Post. Her transformation from trusted journalist to convicted felon serves as a stark warning about pandemic-related fraud and the consequences of exploiting national crises for personal enrichment.
