Five Star Bank is asking a federal judge to consider partially lifting a stay order pausing its lawsuit against former restaurateur and event space operator Katherine Mott-Formicola.
The bank is seeking to recover approximately $21 million it currently estimates she stole in a check-kiting scheme. But the lawsuit, filed in 2024, has been on hold since January, leaving Five Star unable to trace and attempt to recover any of the money.
Mott-Formicola owned Crescent Beach in Greece and Monroe’s restaurant in Pittsford, and operated The Wintergarden in downtown Rochester. She pleaded guilty to federal charges of fraud and money laundering a year ago but has yet to be sentenced. The criminal case has been adjourned four times this year, pushing sentencing to March 2026.
She faces a maximum of 30 years in prison and a $1 million fine.
Her co-defendants in the lawsuit, including her business partner and other entities, “who we believe received millions of dollars in proceeds from Ms. Mott — have not had to answer any questions, provide any information or otherwise account for the funds they ostensibly received from Ms. Mott,” Five Star’s lawyer Richard Hartunian wrote in a letter to Judge Frank Geraci Jr. on Monday.
“To date, these individuals have not been criminally charged and have not had to provide any information to (Five Star),” the letter continued. “This has left (Five Star) unable to understand how the stolen funds were moved or dissipated.”
While the goal was to liquidate assets as a means of repaying the debt, that has largely just slowed the depletion of her business portfolio.
"It now appears that Ms. Mott lacks sufficient assets to satisfy even a small fraction of the (Five Star’s) loss,” Hartunian wrote. “Although approximately $21 million was stolen, no amount has been paid other than a nominal recovery of $593,919.43 from Community Bank at the outset of this case.”
