Chicago police previously told the I-Team they were investigating Fatoumata "Binta" Diallo.
Diallo made her first court appearance Monday, after being arrested.
Teens and their parents told the I-Team they paid Diallo hundreds of dollars to design their prom dresses, but they say she never delivered, leaving them empty-handed.
Chicago police arrested Diallo, and she has since been released under pre-trial conditions.
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ABC7 Chicago previously spoke with Diallo over the phone, but she did not want to provide a statement. The mothers said all they want is a refund.
CPD is encouraging anyone who believes they have a complaint about Diallo to contact Area Three detectives at 312-744-8263.
Diallo was in court Aug. 9.She pleaded not guilty.
The video in the player above is from an earlier report.