(WNY News Now) – ROCHESTER, N.Y. — Katherine Mott-Formicola, a 54-year-old Pittsford resident, pleaded guilty to financial institution fraud and money laundering in a scheme that defrauded multiple banks of nearly $21 million. The guilty plea was announced by U.S. Attorney Trini E. Ross.
Mott-Formicola orchestrated a check-kiting operation between multiple business accounts at Five Star Bank and Kinecta Federal Credit Union between November 2022 and March 2024. As a controlling member of several business entities, she used her positions to write checks for amounts greater than the balances in her accounts. By exploiting the delay between depositing and clearing checks, she inflated account balances across various financial institutions, effectively stealing millions.
According to Assistant U.S. Attorney Nicholas Testani, Mott-Formicola wrote over 500 fraudulent checks during the scheme, artificially inflating account balances to cover her personal and business expenses. When Kinecta finally rejected her checks in March 2024, she had already withdrawn $20.9 million, which she spent on real estate and other business ventures. The resulting charge-back left Five Star Bank with a loss of nearly $19 million.
The investigation involved multiple agencies, including the FBI, IRS Criminal Investigation, and the New York State Department of Financial Services.
Mott-Formicola faces a maximum penalty of 30 years in prison and a fine of up to $1 million. Her sentencing is scheduled for May 1, 2025, before U.S. District Judge Frank P. Geraci, Jr.
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