Stanislav Sannikov, Wire Fraud, Illinois 2023

Chicago Real Estate Broker Sentenced to Prison for Wire Fraud Scheme

CHICAGO, IL - Stanislav Sannikov, also known as 'Steve Sannikov,' a Chicago real estate broker, has been sentenced to more than four years in federal prison for orchestrating a fraud scheme that bilked at least four investors out of more than $3 million.

Sannikov, 42, of Chicago, owned and operated Chestnut Realty Group, a real estate company in Chicago. From 2016 to 2020, Sannikov fraudulently claimed to investors that certain properties were for sale and that he could negotiate the purchase on their behalf.

Sannikov further claimed that the properties could be re-sold or leased for a substantial profit. However, in reality, Sannikov knew that the properties were not available for sale or lease. Sannikov induced the victim investors to deposit earnest money into what he told them was an escrow account maintained by Chestnut Realty.

In fact, Sannikov knew that Chestnut Realty was not licensed to act as an escrow agent and that the account was actually a checking account controlled by Sannikov. Sannikov withdrew the investor funds and spent the money on his own lavish lifestyle.

One victim, who is now in his 70s, had to put off retirement so that he could pay off his losses. On Friday, U.S. District Judge Joan Humphrey Lefkow ordered Sannikov to pay $2.19 million in remaining restitution to four victims.

Sannikov pleaded guilty last year to a federal wire fraud charge. In February, Judge Lefkow sentenced Sannikov to four years and two months in prison. This sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the FBI Chicago Field Office.

This was not a one-time lapse in judgment, argued Assistant U.S. Attorney Sheri H. Mecklenburg in the government's sentencing memorandum. Defendant, over the course of at least four years, designed and engaged in a calculated, sustained, multi-faceted scheme to defraud multiple individuals.

Source: https://www.justice.gov/usao-ndil/pr/chicago-real-estate-broker-sentenced-more-four-years-prison-bilking-investors-out-more