A Chicago real estate broker named Stanislav “Steve” Sannikov has been sentenced to four years in federal prison. He scammed at least four investors out of more than $3 million. A judge also ordered him to pay back over $2 million to the people he cheated.
Fake Property Deals Fooled Investors
Between 2016 and 2020, Sannikov told investors that he could help them buy certain properties. He said the properties could later be sold or rented for a big profit. But these properties were not actually for sale or lease. Sannikov knew this, but he still convinced investors to give him money.
Misused Escrow Account for Personal Spending
Sannikov told investors their money was going into a safe escrow account with his company, Chestnut Realty Group. In reality, Chestnut Realty was not allowed to act as an escrow company. The money went into a regular checking account that Sannikov controlled. He used the funds for his own luxury lifestyle instead of investing them.
Victims Faced Big Losses
One of the victims, a man in his 70s, lost so much money that he had to delay his retirement. The judge said the broker’s actions caused serious harm to people who trusted him with their savings.
Broker Ran a Long-Term Fraud Scheme
Sannikov pleaded guilty to wire fraud. In court, the prosecutor said this wasn’t a simple mistake. The broker carefully planned and ran a complex scam for over four years, fooling multiple investors. Now, he must serve time in prison and repay over $2 million to his victims.
