![]() Stronger oversight must be instituted to ensure that FinTech companies like Blueacorn adhere to ethical standards and transparent business practices when handling PPP loans.Blueacorn’s disregard for safety protocols has further increased public mistrust of financial technology (FinTech) companies and only harmed those who were already vulnerable.The report highlights the critical role technology plays in making sure Americans receive an equitable distribution of aid meant to support them during this crisis.The report also indicates that co-owners Nathan and Stephanie Hockridge-Reis applied for and received nearly $300,000 in PPP loans for themselves and their small businesses, a practice referred to as “VIPPP” loans. ![]() The Paycheck Protection Program (PPP) was intended as an invaluable lifeline to small businesses struggling during the pandemic, but Blueacorn has been accused of failing to identify fraud while raking in millions in processing fees.This report highlights the necessity for increased diligence when dealing with government operations such as the PPP, specifically relating to financial technology firms. Financial technology firms like Blueacorn, who profited immensely by transferring $300 million to its owners, essentially acted as enablers of this fraud by implementing inadequate measures for prevention and relying heavily on affiliated companies with inexperienced personnel. The recent investigative report of the Congressional Select Subcommittee on the Coronavirus Crisis uncovered a stark reality: rampant fraud in the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) due to the propagation of Severe Acute Respiratory Syndrome Coronavirus 2 (SARS-CoV-2), which is the virus causing the COVID-19 pandemic.
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