On Thursday, a congressional report accused Scottsdale-based company Blueacorn of facilitating fraudulent and ineligible Paycheck Protection Program loans. The small business loans were administered by the U.S. Small Business Administration as part of the federal coronavirus rescue
The findings come after an investigation was launched last year.
Former Phoenix news anchor Stephanie Hockridge Reis and husband, Nate Reis, founded the financial technology company in April 2020.
While the mission of Blueacorn states that the firm would help small businesses, the document released by the Select Subcommittee on the Coronavirus Crisis said the start-up failed to conduct a proper verification process for Paycheck Protection Program applicants.
The report said the founders arranged Paycheck Protection Program loans for themselves and that Blueacorn relied on third parties to process loan applications.
Committee Chairman James Clyburn referred the findings over to the Department of Justice and the Small Business Administration.
