NORTHERN DISTRICT OF TEXAS - Nathan Reis, 47, co-founder of the lender service provider Blueacorn, was sentenced to 10 years in federal prison for his role in a scheme that fraudulently obtained more than $65 million in Paycheck Protection Program (PPP) loans guaranteed by the U.S. Small Business Administration (SBA). He was also ordered to pay over $66 million in restitution.
According to court documents, Reis co-founded Blueacorn in April 2020, claiming to help small businesses access PPP loans under the CARES Act. Instead, he and co-conspirators submitted fraudulent loan applications containing fabricated tax documents, bank statements, and other false information. The group charged borrowers fees based on a percentage of funds received and processed more than 530 fraudulent loans.
Reis pleaded guilty in August 2025 to conspiracy to commit wire fraud. Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division said, “Stealing money from federal relief programs is stealing money contributed by taxpayers to help individuals and small businesses survive economic hardship. This sentence sends a clear message that those who exploit government programs will be brought to justice.”
U.S. Attorney Ryan Raybould for the Northern District of Texas noted the timing of the scheme: “In a critical time for our nation, when businesses were trying to survive a worldwide pandemic, this defendant egregiously lined his own pockets via his massive fraud scheme.”
Investigations were conducted by the FBI, IRS Criminal Investigation, the Special Inspector General for Pandemic Recovery, the Federal Reserve Board-Consumer Financial Protection Bureau Office of Inspector General, and the SBA Office of Inspector General. Prosecutors included Acting Assistant Chief Philip Trout of the DOJ Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Weybrecht.
The case is part of the DOJ Criminal Division’s ongoing efforts to prosecute PPP fraud. Since the CARES Act was enacted, the Division has pursued over 200 defendants in more than 130 criminal cases, seizing more than $78 million in fraud proceeds.
The public is encouraged to report suspected COVID-19 relief fraud to the Justice Department’s National Center for Disaster Fraud via its hotline or online complaint form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
