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Blueacorn Co-Founder Nathan Reis Sentenced to 10 Years for PPP Fraud

The sentence includes a restitution order exceeding $66 million plus a Jan. 20 report date to FCI Bastrop.

Overview

  • Reis pleaded guilty earlier this year to conspiracy to commit wire fraud tied to fraudulent Paycheck Protection Program applications.
  • A judge ordered $2.5 million to be paid within two weeks and nearly $64 million in additional joint restitution with co-defendants, according to court filings.
  • He will serve his term at FCI Bastrop and faces two years of supervised release after completing his prison sentence.
  • Co-founder Stephanie Hockridge separately received a 10-year term after a jury conviction; she is on an ankle monitor, must self-report Dec. 30, and is pursuing an appeal and a staggered sentence request.
  • Prosecutors said Blueacorn coached applicants and forged payroll, tax, and bank records, while a congressional review reported the firm took in nearly $1 billion in fees and transferred $300 million to its owners.