Overview

• Nathan Reis entered a guilty plea Tuesday in Texas federal court for one count of conspiracy to commit wire fraud tied to Blueacorn’s PPP loan applications.
• Court documents allege that from April 2020 to May 2021 Reis helped fabricate tax and bank records, falsify income and payroll figures and charge borrowers fees based on loan amounts.
• Prosecutors contend Reis and co-founder Stephanie Hockridge established VIPP, a fee-based coaching service that coached clients on submitting false PPP applications in exchange for kickbacks.
• Stephanie Hockridge was convicted by a federal jury in June of conspiracy to commit wire fraud and is scheduled to be sentenced on October 10, while Reis faces sentencing on November 21.
• Both face up to 20 years in prison and hefty fines under federal sentencing guidelines, highlighting the Justice Department’s wider crackdown on pandemic-relief fraud.