Nathan Reis, 47, a co-founder of Blueacorn, a lending service provider, was sentenced to ten years in federal prison for his role in a scheme that fraudulently obtained over $65 million in Paycheck Protection Program (PPP) loans guaranteed by the United States Small Business Administration. He was also forced to pay more than $66 million in restitution.
According to court documents, Reis co-founded Blueacorn in April 2020, claiming to assist small businesses in obtaining PPP loans under the CARES Act. Instead, he and his co-conspirators submitted bogus loan applications with forged tax documents, bank statements, and other fake information. The organization charged borrowers fees based on the proportion of monies collected and processed over 530 fraudulent loans.
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In August 2025, Reis pleaded guilty to conspiracy to commit wire fraud. Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division stated, “Stealing money from government relief programs is stealing cash that taxpayers have given to help individuals and small businesses overcome economic distress. This line makes it clear that those who take advantage of government programs will face legal consequences.
U.S. Attorney Ryan Raybould for the Northern District of Texas emphasized the plan’s timing: “In a critical time for our nation, when businesses were trying to survive a worldwide pandemic, this defendant egregiously lined his pockets via his massive fraud scheme.”
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 Small Business Administration Office of Inspector General all conducted investigations. Prosecutors included Acting Assistant Chief Philip Trout of the DOJ Criminal Division’s Fraud Section and Assistant United States Attorney Matthew Weybrecht.
The case is part of the DOJ Criminal Division’s continued efforts to combat PPP fraud. Since the CARES Act was passed, the Division has prosecuted over 200 offenders in more than 130 criminal cases, seizing more than $78 million in fraudulent funds.
