From the U.S. Attorney:
MAN PLEADS GUILTY TO FRAUDULENTLY ARRANGING UTILITY SERVICES FOR THOUSANDS OF CHICAGO-AREA PROPERTIES
CHICAGO — A man who fraudulently arranged for more than $5 million in utility services to be provided to 2,000 Chicago-area properties has pleaded guilty to a federal fraud charge.
DAVID W. BROWN admitted in a plea agreement that he offered to arrange electricity and natural gas services for residential and commercial properties in the Chicago area in return for a fee.
After finding property owners and tenants willing to pay him, Brown opened new accounts for utility services at their addresses, knowing that neither he nor the purported customer intended to pay for it, the plea agreement states.
Brown knew it would typically take 90 days to several months for the utility companies to disconnect service for lack of payment, allowing the addresses to receive free services for significant periods of time.
Brown opened the accounts using false customer names and identifying information to deceive the service providers and avoid financial responsibility, the plea agreement states.
Once a utility company initiated the process to terminate, Brown fraudulently continued the service by opening new accounts in the names of different false customers at the same address, the plea agreement states.
Brown typically received payments ranging from $50 to $150 every few months from the property owners and tenants who received the services, the plea agreement states. In total, Brown admitted in the plea agreement that from 2017 to 2024, he caused utility companies to fraudulently provide more than $5 million in services to more than 2,000 residential and commercial properties in the Chicago area.
Brown, 55, of Chicago, pleaded guilty on Tuesday to a federal wire fraud charge.
The conviction is punishable by up to 20 years in federal prison. U.S. District Judge LaShonda A. Hunt set sentencing for Oct. 15, 2025.
The guilty plea 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 Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Rick D. Young.
