SPRINGFIELD - A federal grand jury has indicted a third defendant in connection with an alleged $8 million real estate scam involving properties in Decatur and Springfield.

The indictment against Frank Kelly Ciota, 44, of Riverton came Friday, according to a news release from the U.S. Attorney's Office.

Gary Knox, 59, of Decatur and former Belleville appraiser Dennis Wiese Jr., 37, were indicted on charges of bank fraud, wire fraud and mail fraud in July.

The new indictment also names Knox and Wiese and supersedes the previous indictment against them. It alleges that Ciota worked with Knox and Wiese in the scheme, which involved more than 150 fraudulent real estate sales spanning from at least 1999 to 2005.

Knox and Ciota allegedly obtained $3 million from the sales for their personal use and to promote the scheme, prosecutors allege. Wiese was allegedly paid fees of $350 to $450 per appraisal. Those appraisals were falsely inflated, authorities have said.

Prosecutors say Knox represented himself to be in the business of buying, selling and managing real estate, although neither he nor Ciota was a licensed real estate broker. Wiese had been a licensed appraiser, but in May the state revoked his license for 10 years.

Knox and Ciota allegedly recruited buyers with little or no experience in real estate investment. According to the news release, a married couple related to Ciota were the unwitting buyers of four Springfield properties over a three-day period in November 2002.

Ciota is charged with eight counts alleging bank fraud, wire fraud, mail fraud and conspiracy to commit money laundering. He will be issued a summons to appear in court, the release said. The fraud charges are punishable by up to 30 years in prison, while conspiracy to commit money laundering is punishable by up to 20 years in prison.