Ciota Accused of Using Relatives as Borrowers
An amended indictment has been handed down that adds eight counts of bank fraud, wire fraud, mail fraud and money laundering against against Frank Kelly Ciotta, 44, Riverton, Illinois in the case currently proceeding against Gary Knox and Dennis Wiese (click here to view the post on the original indictment.)
The new indictment alleges that Ciota worked with Knox and Wiese in the scheme, which involved more than 150 fraudulent sales of real estate in Decatur and Springfiled, Illinois between 1999 and 2005 totaling $8M.
Prosecutors allege that Knox and Ciota obtained $3 million from the scheme and that Wiese was paid $350 to $450 per appraisal. The indictment alleges that Knox and Ciota would recruit buyers with little or no experience in real estate investment – some of these buyers were relatives of Ciota.
