An ex-financial executive is likely to spend years behind bars over wire fraud charges in an alleged pandemic-era financial scheme to defraud the federal government's small business loan program.
The U.S. Department of Justice said Monday that Nathan Reis, now of Rio Grande in Puerto Rico by way of Arizona, pleaded guilty in Texas to one count of conspiracy to commit wire fraud for his role as company chief at Scottsdale-based lender Blueacorn.
The plea was tied to attempts to fraudulently obtain relief money via the U.S. Small Business Administration's Paycheck Protection Program during the COVID-19 pandemic.
"This defendant had the opportunity to help small businesses overcome tremendous financial hardships during a time of national crisis but instead exploited the system to line his own pockets with taxpayer money," Nancy E. Larson, the acting U.S. attorney for the northern district in Texas, said in a statement.
Reis, 47, created the venture in 2020 with his wife, Stephanie Hockridge, a former KNXV television anchor in Phoenix, purportedly to help small businesses and owners to obtain the federal government's PPP loans.
"Blueacorn connects technology and financial expertise to help small businesses, independent contractors, self-employed individuals, and gig workers with their financial needs," the company's website reads.
In June, Hockridge was found guilty of conspiracy but acquitted on multiple counts of wire fraud. --->READ MORE HERE
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| ConsumerAffairs |
Company advertised fast delivery of PPE but didn't deliver, FTC charged
Frank Romero, operator of Trend Deploy, will be required to hand over the remaining funds in his bank and retirement accounts under a settlement the Federal Trade Commission has asked a court to approve. The deal follows Romero’s failure to comply with a 2023 court judgment that ordered him to repay consumers he misled during the height of the COVID-19 pandemic.
The FTC’s original June 2021 complaint accused Romero of advertising the quick availability of personal protective equipment—including N95 masks—despite having no basis to make such claims. The agency said Romero frequently failed to deliver products on time, if at all; sent lower-quality goods than promised; ignored required notifications of delays; and denied refunds required under the Mail Order Rule.
In May 2023, a court found Romero in violation of the Mail Order Rule, the FTC Act, and the COVID-19 Consumer Protection Act, issuing a permanent injunction and ordering a monetary judgment to fund consumer refunds.
Post-judgment enforcement
When Romero failed to pay, the FTC pursued additional enforcement steps—securing writs of garnishment, freezing assets, and seeking to unwind property transfers. The newly proposed court order would require Romero to:
- Make a cash payment to the FTC
- Surrender funds from five accounts
- Relinquish all rights to those assets
- Cooperate fully in transferring the money to the agency
The recovered funds will be used to issue refunds to consumers harmed by the PPE scheme. Romero remains bound by the earlier injunction against similar conduct. --->READ MORE HEREFollow links below to relevant/related stories and resources:
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