Chicago Man Sentenced to Nearly Eight Years for $8.5 Million Utility Fraud Scheme (Chicago, IL) – A Chicago man has been sentenced to nearly eight years in federal prison after orchestrating a years-long fraud scheme that allowed thousands of residential and commercial properties to receive utility services without paying, resulting in more than $8.5 million in losses.
According to the U.S. Attorney’s Office for the Northern District of Illinois, 56-year-old David W. Brown fraudulently arranged electricity and natural gas service for more than 2,000 properties across the Chicago area between 2017 and 2024.
Federal prosecutors said Brown offered property owners and tenants a way to obtain utility service in exchange for payments ranging from $50 to $150 every few months. He then opened utility accounts using false names and stolen identifying information, knowing that neither he nor the supposed account holders intended to pay the bills.
Authorities said Brown exploited the time it typically took utility companies to disconnect service for nonpayment, allowing customers to receive free electricity and natural gas for months. When utilities began shutting off service, Brown allegedly opened new fraudulent accounts under different fake identities at the same addresses, allowing service to continue uninterrupted.
The scheme caused Commonwealth Edison, Nicor Gas, and People’s Gas to provide at least $8.5 million in unpaid utility services, according to prosecutors.
Brown pleaded guilty in July 2025 to one count of federal wire fraud.
On Tuesday June 26th, U.S. District Judge LaShonda A. Hunt sentenced Brown to 92 months in federal prison. The court also ordered him to pay approximately $8.5 million in restitution to Commonwealth Edison, Nicor Gas, and People’s Gas.
The case was announced by U.S. Attorney Andrew S. Boutros for the Northern District of Illinois and Douglas S. DePodesta, Special Agent-in-Charge of the FBI’s Chicago Field Office.
In the government’s sentencing memorandum, Assistant U.S. Attorney Rick D. Young argued that Brown’s actions caused substantial financial harm to local utility providers.
“Defendant’s scheme caused significant losses to local utility service providers,” Young wrote. “The fees collected by defendant demonstrate that his primary motivation was to benefit himself.”
Federal authorities said the investigation underscores the consequences of large-scale fraud schemes that target public utility providers and rely on false identities to obtain services unlawfully.
Chicago Man Sentenced to Nearly Eight Years for $8.5 Million Utility Fraud Scheme
