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Nathan Reis Sentenced for $65M COVID-19 Relief Fraud Scheme
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# Co-Founder of Paycheck Protection Program Lender Service Provider Sentenced for $65M COVID-19 Relief Fraud Scheme (Nathan Reis)
**Source:** U.S. Department of Justice, Office of Public Affairs
**Date:** Thursday, December 18, 2025
**Press Release Number:** 25-1218
**URL:** https://www.justice.gov/opa/pr/co-founder-paycheck-protection-program-lender-service-provider-sentenced-64m-covid-19-relief
**Retrieved:** 2026-06-12
**Components:** Criminal Division (Fraud Section; Money Laundering, Narcotics and Forfeiture Section); USAO - Northern District of Texas
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A co-founder of a lender service provider was sentenced to 10 years in prison for participating in a scheme to fraudulently obtain over $65 million in Paycheck Protection Program (PPP) loans guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The defendant was also ordered to pay over $66 million in restitution.
"This defendant orchestrated one of the nation's largest schemes to defraud the Paycheck Protection Program during a global pandemic," said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department's Criminal Division. "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 people who exploit government programs to enrich themselves will be brought to justice."
"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," said U.S. Attorney Ryan Raybould for the Northern District of Texas.
"SBA was proud to support the Justice Department in their work to bring one of our nation's largest pandemic fraudsters to justice," said Small Business Administration (SBA) Administrator Kelly Loeffler.
"Nathan Reis orchestrated a massive fraud that siphoned tens of millions of dollars from a program meant to save small businesses during a national emergency," said Acting Deputy Chief Justin Campbell of IRS Criminal Investigation.
According to court documents, Nathan Reis, 47, of Rio Grande, Puerto Rico, and previously of Arizona, conspired with others to submit false and fraudulent PPP loan applications to receive loan funds for which they were not eligible. In April 2020, Reis co-founded Blueacorn, purportedly to help small businesses and individuals obtain PPP loans. Through Blueacorn, Reis and his co-conspirators submitted fraudulent PPP loan applications they knew contained materially false information to make more money. Reis and others fabricated documents, including tax documents and bank statements. As part of the conspiracy, Reis and his co-conspirators charged borrowers fees based on a percentage of the funds received. In total, Reis and his co-conspirators processed over 530 fraudulent loans causing over $65 million in losses.
In August 2025, Reis pleaded guilty to conspiracy to commit wire fraud.
The FBI, IRS-CI, the Special Inspector General for Pandemic Recovery, Federal Reserve Board-Consumer Financial Protection Bureau Office of Inspector General, and SBA Office of Inspector General investigated the case.
Acting Assistant Chief Philip Trout of the Criminal Division's Fraud Section; Trial Attorneys Elizabeth Carr and Ryan McLaren of the Criminal Division's Money Laundering, Narcotics and Forfeiture Section; and Assistant U.S. Attorney Matthew Weybrecht for the Northern District of Texas are prosecuting the case.
The Fraud Section leads the Criminal Division's prosecution of fraud schemes that exploit the PPP. Since the enactment of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds.