PPP and SBA loan fraud

What a public sentencing described

On November 21, 2025, the Office of Public Affairs announced that Stephanie Hockridge, also known as Stephanie Reis, 42, was sentenced to 10 years in prison for participating in a scheme to obtain over $63 million in Paycheck Protection Program loans guaranteed by the Small Business Administration under the CARES Act. She was also ordered to pay over $63 million in restitution. A jury found her guilty on June 20 of one count of conspiracy to commit wire fraud. ¹ Source 1

The release says she co-founded Blueacorn in April 2020, purportedly to help small businesses get PPP loans. To get larger loans, she and co-conspirators fabricated payroll records, tax documents, and bank statements, and charged borrowers kickbacks based on a percentage of the funds received. A service they called VIPPP coached borrowers on false applications. The release says they processed over $63 million in fraudulent PPP loans. ¹ Source 1

Which published programs may apply

The Fraud Division’s October 20, 2026 pages include fraud on programs administered by the Small Business Administration among the subjects eligible for the early $10,000 to $30,000 reward. The reward is discretionary and is tied to unsealed criminal charges, not to a percentage of the loan. ² Source 2 ³ Source 3

PPP loans were federal relief. False applications can also be charged as wire fraud, bank fraud, or false claims, depending on the case. The Hockridge release reports a wire-fraud conspiracy conviction and a prison sentence. It does not report a whistleblower award. ¹ Source 1 ⁴ Source 4

Where to report

Report at America.gov/fraud. The Civil Division describes inspector general reports, including for pandemic relief, and qui tam complaints. This site does not collect the tip. ⁵ Source 5 ⁶ Source 6