URBANA - A federal judge on Friday ordered a Decatur man jailed pending trial on fraud charges in what prosecutors say was a multimillion-dollar real estate scheme.

Gary L. Knox, 59, was indicted July 8 by a federal grand jury in Springfield. He has pleaded not guilty to 10 counts of bank fraud, wire fraud or mail fraud. Each count is punishable by up to 30 years in prison.

Authorities say the scheme involved more than 150 fraudulent real estate sales in Decatur and Springfield and netted Knox more than $3 million.

Knox is being held in DeWitt County Jail. Trial is set for Aug. 29, but prosecutors say that is likely to be delayed.

"I think this is an individual who cannot be trusted, shouldn't be trusted and isn't going to be trusted by the court on conditions of release," said U.S. Magistrate Judge David G. Bernthal.

Federal prosecutors allege Knox and former Belleville appraiser Dennis Wiese Jr., 37, defrauded lenders, buyers and sellers. Wiese is charged with nine counts of fraud, and is scheduled to appear in federal court on Aug. 3.

In arguing for Knox's detention, Assistant U.S. Attorney Timothy Bass said Knox was a risk to flee or to obstruct justice because he has substantial assets in hiding. Bass said authorities haven't been able to find out what happened to the money Knox received in about half of the allegedly fraudulent transactions.

Authorities have determined Knox withdrew nearly $800,000 from various bank accounts since 2001.

Bass said Knox previously was convicted of a similar scam, pleading guilty in 1993 to bank and mail fraud. Bass presented testimony from Gary Russell, a supervising U.S. probation officer, who said Knox violated the terms of parole in that case by not submitting monthly reports in a timely fashion or paying restitution to his ability.

His parole was terminated early because Knox agreed to cooperate with the government in several pending investigations, Russell said. The day after Knox's parole was terminated, he admitted to another probation officer that he had been involved in real estate fraud and other illegal activities while on parole, Russell said.

Federal public defender Brian Threlkeld sought Knox's release, saying Knox has ties to the Decatur community and showed up for court appearances in his previous federal case.

In a court filing, his lead attorney, Tiffani Johnson, said Knox's resources are scant.

"Mr. Knox emphasizes, that if he were harboring a large amount of funds to be used to flee the jurisdiction, he had plenty of opportunity to do so approximately one year ago, when he became aware that he was being investigated," she wrote.

Knox's wife, Vicki, and several other relatives attended the hearing. Vicki Knox declined comment on the allegations.

Stephanie Potter can be reached at spotter@;herald-review.com or 421-7984.