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Federal government detains woman for allegedly obtaining COVID-19 relief loan

CHICAGO (AP) – An Illinois woman threatened with jail for stealing millions of dollars through her boyfriend’s business credit card was in federal custody on Tuesday for allegedly obtaining a COVID relief loan 19 as she was preparing to report to prison.

Federal prosecutors on Monday asked a U.S. district court judge to revoke bail for Crystal Lundberg, who they say illegally obtained a $ 150,000 loan to fight the pandemic. Lundberg, 34, is being held at the Metropolitan Correctional Center in Chicago, according to records from the United States Bureau of Prisons. No new charges against Lundberg have been announced.

Lundberg was due to report to prison on December 31. But in a court case on Monday, prosecutors asked a federal judge to revoke her bond, claiming she had lied about federal paycheck protection loan applications and failed to disclose her fraud conviction or that she was about to start serving a sentence of 52 months in prison.

The paycheck protection loan, which was disbursed in September, was to be used to keep a Lundberg-owned beauty salon solvent during the COVID-19 pandemic. However, Lundberg spent the money on travel, electronics, clothing and legal fees, prosecutors said.

Lundberg was sentenced to jail last year for racking up nearly $ 5.8 million in luxury items charges on a boyfriend’s business credit card.

Margarita W. Wilson

The author Margarita W. Wilson