Feds hold woman for allegedly obtaining COVID-19 relief loan

CHICAGO (AP) - An Illinois woman facing incarceration for stealing millions of dollars through her boyfriend's business credit card was in the custody of federal authorities Tuesday for allegedly obtaining a COVID-19 relief loan as she prepared to report to prison.

A U.S. District Court judge on Monday was asked by federal prosecutors to revoke the bond of Crystal Lundberg, who they say illegally obtained a $150,000 pandemic-relief loan. Lundberg, 34, is being held at the Metropolitan Correctional Center in Chicago, U.S. Bureau of Prisons records show. No new charges against Lundberg has been announced.

Lundberg was scheduled to report to prison on Dec. 31. But in a court filing Monday, prosecutors asked a federal judge to revoke her bond, saying she lied on applications for a federal Paycheck Protection Loan and failed to disclose her fraud conviction or that she was about to begin serving a 52-month prison term.

The Paycheck Protection Loan, which was disbursed in September, was to be used to keep a beauty salon Lundberg owned solvent during the COVID-19 pandemic. However, Lundberg spent the money on trips, electronics, clothing and legal bills, prosecutors allege.

Lundberg was sentenced to prison last year for racking up nearly $5.8 million in charges on luxury items on the corporate credit card of a boyfriend.