Chicago man pleads guilty to $5 million utility fraud scheme
CHICAGO - A Chicago man has pleaded guilty to a federal fraud charge for arranging more than $5 million in unpaid utility services for thousands of properties in the Chicago area.
What we know:
David W. Brown, 55, admitted in a plea agreement that he set up electricity and natural gas accounts for more than 2,000 residential and commercial properties from 2017 to 2024.
Prosecutors say he offered to arrange the services in return for a fee, knowing neither he nor the listed customers intended to pay the bills.
According to the plea agreement, Brown used fake customer names and identifying information to open utility accounts. When companies began disconnecting service for nonpayment—a process he knew would take several months, allowing properties to receive free utilities during that time—he would reopen accounts at the same addresses using different fake names to keep the unpaid service going.
He typically charged property owners and tenants between $50 and $150 every few months for arranging the accounts, the plea agreement states.
What's next:
Brown pleaded guilty on Tuesday to a federal wire fraud charge. He faces up to 20 years in prison when he is sentenced on Oct. 15.
The Source: The information in this article was provided by the U.S. Attorney’s Office, Northern District of Illinois.