A former escort convicted of $ 6 million in fraud illegally received a $ 150,000 loan to aid pandemic while waiting for the deadline to report to federal prison, prosecutors alleged Monday.
Crystal Lundberg was sentenced to 52 months in prison last year on her multi-million dollar charge – including travel, jewelry and even breast implants – after her ex-boyfriend gave her access to his company credit card.
She was due to report to the jail on December 31st. But in a court case on Monday, prosecutors asked a federal judge to revoke her bail, saying she lied on applications for a federal loan to protect her paycheck and failed to disclose her conviction of federal fraud or that she was about to be sentenced to jail serve.
The $ 150,000 loan, which was disbursed in September, was alleged to keep a Lundberg beauty salon afloat during the COVID-19 crisis. Instead, Lundberg spends the money on travel, electronics, clothing, and attorney’s bills, according to prosecutors.
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The FBI issued a search warrant on the bank account the funds were transferred to on November 5, but by then the funds had been drained, prosecutors said.
Lundberg’s lawyer made arrangements for her handover on Monday, according to the prosecutor. Her attorney was not immediately available for comment.
Lundberg and her ex-boyfriend Scott Kennedy, a former Buffalo Grove manager, were charged in 2017 with credit card fraud, details of which the Tribune previously reported.
In November 2015, Kennedy gave Lundberg access to a company credit card, the authorities said. In less than two years, the couple has raised $ 5.8 million in fees to France-based drug delivery company Nemera, of which Kennedy was a senior tax officer.
Much of the expense came after Lundberg moved to San Diego with her children and pets in 2016. According to evidence presented at the trial, the company unknowingly paid their $ 12,000 per month rent for a villa.
In California, Lundberg spent about $ 585,000 on a failed attempt to open a medical spa called the Royalty Room. Additional expenses included two Rolex watches for a total of $ 60,000, a personal driver for $ 8,000 a month, and two purebred dogs that cost up to $ 6,000, according to prosecutors.
She also flew to Miami in 2016 to have breast implants and liposuction performed by a surgeon she found on YouTube, prosecutors said.
A federal jury condemned Lundberg in May 2019 for multiple transfer fraud.
Kennedy was fired from his job as manager of Nemera’s $ 175,000-a-year Buffalo Grove plant after the scam was exposed. He pleaded guilty to a wire fraud case in 2018 and agreed to work together against Lundberg.