ROCHESTER, N.Y. — A judge has delayed the sentencing of Katherine Mott-Formicola, the Pittsford business owner who pleaded guilty in a check-kiting scheme, as she cooperates with federal investigators.
The new sentencing date is scheduled for July 14 in U.S. District Court, according to court documents. Mott-Formicola was supposed to be sentenced on Thursday morning in a scheme that defrauded Five Star Bank out of nearly $19 million. She pleaded guilty to financial institution fraud and money laundering charges in December 2024.
However, earlier this month, attorneys from both sides asked for a delay in her sentencing so she could continue to work with the feds, including testifying before a grand jury.
What happened?
Mott-Formicola over-inflated her bank balances, defrauding Five Star Bank out of nearly $19 million. According to a criminal complaint, Mott-Formicola deposited 68 checks since February of 2024, totaling over $62 million. She then withdrew over $20 million via checks, which Five Star Bank said she did not actually have.
The complaint said Mott-Formicola opened several business accounts with Five Star Bank in 2022. In 2024, she “exploited and abused the privilege of doing business in the corporate form” with a check-kiting scheme.
What is check-kiting?
Check-kiting is when someone writes a check for a dollar amount greater than what the bank account contains. The check goes to a different bank account, knowing that banks typically place funds into the depositing account before confirming the funds in the withdrawing account.
READ MORE: What is check-kiting? Legal experts weigh in on crime in Crescent Beach allegations (March 13, 2024)
More about Katherine Mott-Formicola
Mott-Formicola owned several businesses, including Monroe’s, The Wintergarden, The Divinity Estate, Chapel, and the former Crescent Beach Hotel. In 2024, a court-appointed receiver suggested Mott-Formicola might need to sell some of her businesses to stay afloat.
READ MORE: Court-appointed receiver recommends sale of restaurants owned by prominent restaurateur accused of defrauding bank out of nearly $19 million
Does anyone own the businesses now?
A former employee of Wintergarden at the Legacy Tower bought the event venue in March of 2025. In April 2025, a purchase offer was first listed for Crescent Beach Restaurant in Greece.
READ MORE: Purchase offer listed for Crescent Beach after owner forfeits restaurant in court ruling (April 8, 2025)
Later that year, in July, there was speculation that the Wegmans family might be interested in purchasing the restaurant. A local business owner also expressed interest in acquiring the property, but later backed out.
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