It transferred nearly $300 million in profits to its owners while only spending $8.6 million-less than one percent of the fees it received for its PPP work on fraud prevention. Blueacorn received over $1 billion in taxpayer-funded processing fees.The report concluded that Blueacorn took only minimal steps to prevent fraud in its facilitation of billions of dollars in PPP loans while abusing the program to enrich its owners.
"On top of the windfall obtained by enabling others to engage in PPP fraud, some of these individuals may have augmented their ill-gotten gains by engaging in PPP fraud themselves."īlueacorn was one of the fintech companies in the probe. "Even as these companies failed in their administration of the program, they nonetheless accrued massive profits from program administration fees, much of which was pocketed by the companies’ owners and executives," subcommittee Chairman Rep. On Thursday, the Select Subcommittee on the Coronavirus Crisis released a staff report detailing the poor performance of many financial technology companies, known as fintechs, in administering the nation’s largest pandemic relief program. Local Blueacorn founders include former ABC15 anchor Stephanie Hockridge Reis and her entrepreneur husband Nate Reis. The video in the player above is from December 2021 coverage of the initial fraud investigation. PHOENIX - A Scottsdale-based company that processed Paycheck Protection Program loan applications during the pandemic failed to screen out applicants with signs of fraud while abusing the program to enrich its owners, according to a congressional subcommittee.īlueacorn PPP helped process more than $12 billion in PPP loans, according to the company.
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