Sentencing delayed in check-kiting scheme as Pittsford woman cooperates with investigators

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.

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.

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.

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.