Key Takeaways
- Sannikov defrauded four victims out of over $3 million through fake property deals
- He falsely claimed to use escrow accounts but instead funneled funds into personal accounts
- He was sentenced to 50 months in prison and ordered to pay $2.19 million in restitution
Chicago Broker’s ‘Lavish Lifestyle’ Fueled by Lies, Wrecked Retirement Dreams, and Robbed Millions
Could your next investment partner be a con artist in disguise?
This case exposes the dark side of unchecked trust in real estate partnerships—and why due diligence isn’t optional.
Here’s what every investor needs to know about this jaw-dropping scheme:
- Broker used fake real estate listings to defraud investors out of $3 million
- Victims were misled into wiring funds to a personal checking account disguised as an escrow
- Court orders $2.19 million restitution after sentencing broker to 50 months in prison
Let’s break down what really happened so it doesn’t happen to you.
Broker Promised Profits, Delivered Pain Instead
From 2016 to 2020, 42-year-old Stanislav “Steve” Sannikov operated Chestnut Realty Group in Chicago with a convincing front.
But behind the desk, the trusted broker ran a predatory scheme that preyed on at least four investors—many of whom believed they were placing funds into legitimate property deals with lucrative returns.
According to federal prosecutors, Sannikov told victims that specific properties were available for sale or lease.
He falsely claimed that he could acquire and resell or rent them for large profits.
But the ugly truth?
These properties weren’t on the market. The deals never existed.
Worse, he directed his victims to deposit their investment funds into what he called an “escrow account” operated by Chestnut Realty Group.
In reality, Chestnut Realty wasn’t licensed to operate such an account.
The supposed escrow?
It was a checking account Sannikov controlled himself.
The Lavish Truth: Investor Funds Fueled Personal Lifestyle
Instead of holding or investing the money, Sannikov used those funds to bankroll his personal life. As prosecutors laid out in court, Sannikov drained the account for lavish spending.
One elderly investor in his 70s reportedly had to delay his retirement to recover from the devastating loss.
U.S. District Judge Joan Humphrey Lefkow wasn’t convinced this was a mere lapse in judgment.
She agreed with the U.S. Attorney’s Office that Sannikov’s actions constituted a long-running and calculated deception.
In February 2025, Sannikov was sentenced to 50 months in federal prison, followed by a ruling last Friday that he must repay $2.19 million in restitution to the defrauded victims.
“This was not a one-time lapse in judgment,” wrote Assistant U.S. Attorney Sheri H. Mecklenburg. “(The) defendant… engaged in a calculated, sustained, multi-faceted scheme to defraud multiple individuals.”
Assessment
This dramatic case is a sobering reminder to every U.S. real estate investor: blind trust can cost you everything.
Sannikov’s scheme was not a back-alley con—it came packaged in the suit and tie of a seemingly professional broker with a real company.
For real estate investors, this story reinforces the importance of verifying escrow licensing, confirming property statuses, and never wiring funds without third-party legal verification.
In an industry built on partnerships and capital flow, Sannikov’s four-year sentence is a powerful warning: real estate fraud doesn’t just break laws—it breaks lives.
