If all of the money was used on the house the builder did not commit any fraud and it was not unlawful for the builder to not pay the contractor in full, since the contractor was in breach of contract
for not completing the job and the builder had to hire someone else to complete the job. If it were fraud, then under breach of contract the statute of limitations would be 6 years, but again this is not fraud as long as the money went to what it was supposed to go to.
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