Kathryn Mott’s business remains open amid allegations of a massive check-taking scheme, but the future of long-term ownership of her catering and restaurant operations is beginning to look bleak.
“Due to structural and systemic operational deficiencies, additional non-business assets and even business assets will need to be sold,” the court-appointed receiver warned in the report.
Efforts have already begun to sell the Crescent Beach Lakeside Restaurant in Greece, which Mott acquired but was unable to open and closed.
Similarly, Mott is moving to sell his Monroe’s restaurant in Pittsford and his Divinity Estate and Chapel wedding and event operations, the report said. Mott was a top local restaurateur and event planner, but records show that her increased workload made things even tougher.
Mr. Mott’s lawyer declined to comment.
receiver warning
Trustee Mark Kercher was appointed in April and reported that the business remains viable and operating mostly normally. But the long-term fiscal outlook is steadily becoming more dire, the report shows.
Given existing debt and other expenses, the company is likely to rely on divestitures to fund its survival and stability, the report said.
Mr. Mott’s business is “structurally incapable of meeting these normal obligations,” Mr. Kercher wrote.
Karcher did not warn that people who booked events should have concerns. In fact, the cash flow from its operations has allowed the company to continue operating almost without issue, and will continue to do so for the foreseeable future.
Check the kite suspicion
In a lawsuit filed this year, Five Star Community Bank accused Mott and his business partners of check kitting.
In the alleged fraud, Five Star alleged that the companies opened multiple accounts and rapidly moved funds between them. Five Star claims this enabled it to pay out about $19 million that could not have been covered by the funds because time could pass after the deposit was made before the bank determined the funds were unavailable. are.
In response, another bank, Community Bank, decided to transfer money from Mr. Mott’s account to Five Star. Mott filed a lawsuit alleging that the $593,000 transfer from the community bank was improper and that the money should have been spent by her.
Five Star officials declined to comment on the latest reports from the recipients.
— Gary Craig is a veteran reporter for the Democrat and Chronicle, covering courts, crime and more. Craig can be reached at gcraig@rocheste.gannett.com. He is the author of two books, including Seven Million: A Cop, a Priest, a Soldier for the IRA, and the Still-Unsolved Rochester Brink’s Heist.
