Oakland Woman Sentenced In Million-Dollar Pandemic Relief Fraud That Funded Luxury Spending Spree
OAKLAND (CBS SF) -- An Oakland woman who pleaded guilty to fraudulently obtaining pandemic relief funds and using the proceeds to fund a lavish spending spree, including high-end automobiles and private jet travel, was sentenced to three years in prison Thursday.
Christina Burden, 36, was originally charged on February 3, 2021 in a federal complaint alleging bank fraud in obtaining funds from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL), using shell companies, according to a press statement from U.S. Attorney for the Northern District of California Stephanie Hinds.
Burden pleaded guilty to two counts of bank fraud and two counts of money laundering. In her plea agreement, Burden admitted registering multiple fictitious businesses with the California Secretary of State, then providing fake documents on the business operations to qualify for PPP or EIDL loans.
According to the complaint, Burden fraudulently claimed she had 89 employees and a monthly payroll of more than $700,000 in her fictitious businesses, according to government documentation. Burden attempted to obtain more than $4.5 million in pandemic relief loans, eventually receiving $992,291 in PPP loans and $150,900 in EIDL loans and advances.
After receiving the fraudulently-obtained funds, Burden spent the money on high-end luxury items and services. According to court document Burden spent $184,000 on private jet travel, other airfare, and hotel expenses; $124,000 on luxury purchases from Louis Vuitton, Neiman Marcus, and Nordstrom; $16,000 on boat and car rentals; and $14,000 on restaurants and entertainment. Another $150,000 was spent on Mercedes, Land Rover, and Nissan automobiles.
In addition to the 36-month prison term, the judge ordered Burden to pay $1.14 million in restitution and included a three-year period of supervision after being released from prison.
Burden was ordered to surrender into custody to begin her sentence on April 7.
