Nine months ago when news first broke of an alleged kite check by a restaurateur Katherine Mott, the questions have become numerous for those who had booked weddings and receptions at some of his businesses.
What does this mean for planned events? Should they keep their dates secure in its rooms? If not, could they get their money back?
These questions are still obscure and, with Mott’s plea Mondayon December 2, following a multi-million dollar fraud, local people planning weddings and receptions feel even less safe.
“It really annoys you that they are still doing business and booking weddings and making money and we are sitting here waiting for a deposit,” said Valerie Barattini, a Greek woman who paid a deposit of $5,000 for her son’s wedding and reception. planned for next year at downtown Mott, The Wintergarden.
Barattini’s son decided in March, when the first check kiting allegations were revealed in a lawsuit, to go elsewhere for reception. Barattini was informed in April that she would get the deposit back. She still hasn’t done it.
A lawyer for Mott’s companies said court-appointed receiver Mark Kercher, who oversees the companies’ finances, would decide on reimbursements. Kercher said he could not provide details on possible refunds.
He noted that the businesses are still in operation and the hope is that they can be sold and the events continue as planned.
The Future of Business by Katherine Mott
Kercher’s latest monthly report details what’s going on with Mott’s various businesses. Kercher reiterates the warnings he has already sounded: the long-term financial prospects of companies, even if they operate successfully on a daily basis, are disastrous without their sale to a stable shareholder base.
That report was released about a week before Mott appeared in federal court and admitted to a check scheme of more than 500 checks that prosecutors say caused a loss of nearly $20 million. As part of his plea, Mott may contest that loss at sentencing, scheduled for May.
Check kiting is a kind of shell game: This involves multiple bank accounts and such rapid transfer of funds from the accounts that positive balances can be falsely displayed.
Mott’s plea calls for a recommended sentence of 78 to 97 months. She can plead for a lesser sentence.
Mott’s guilty plea to checking kiting might not affect businesses, other than making people feel even less safe. But Kercher’s report indicates a buyer might be ready to take over The Wintergarden. The buyer would assume a loan from the U.S. Small Business Administration “as well as obligation for future events,” according to the report.
“It is anticipated that net proceeds, within my control, will be available to fund priority obligations, including contractually obligated event reimbursements,” Kercher wrote. “The agreement under consideration also provides that current employees engaged in organizing events would remain employees of the buyer.”
Mott also owns Monroe’s Restaurant in Pittsford and other businesses.
Katherine Mott’s financial problems
Court and public records show Mott has been late on paying his taxes in recent years, owing the state nearly $200,000 for one of his businesses. She was able to satisfy those judgments, while adding catering or events businesses – notably her purchase of the shuttered lakeside Crescent Beach restaurant in Greece.
Kercher’s latest report states that “for various reasons, the sale of the Crescent Beach property is not currently being considered.” The reasons are not detailed.
Mott’s crimes have created a difficult cycle: those who have financed events at her venues (she also owns The Divinity Estate and Chapel, which could also have a potential buyer) worry about the stability of the businesses as a withdrawal Massive planned events could further disrupt the financial situation.
Several people who paid deposits at Mott’s locations contacted the Democrat and the Chronicle in recent weeks, before and after Mott’s plea. The stories varied slightly — some were moved to other locations, some were not — but each had posted $5,000 bail.
Mott representatives told individuals that, contractually, a deposit can only be returned if the venue is booked for another event on the same date. In April, Barattini was told, unlike others, that she would get the deposit back. Subsequently, the response from the venue representatives stopped.
“They said it would be fully refunded,” said Barattini, who shared the email with the news. “Then I never heard anything. I never received anything – no emails, no texts, nothing.” I sympathize with the Katherine Mott employees who may not have been aware of this.
Penfield resident Galin Gruttadoro also had The Wintergarden booked for his daughter’s wedding next October. “We stopped there in January 2024 and were very impressed,” he said.
When Five Star Bank sued Mott and his business partners in the spring, alleging nearly $20 million worth of kite checks, Gruttadoro reached out to his contacts at Wintergarden.
According to Gruttadoro, he was told: “Oh, don’t worry. It’s nothing. These are trumped-up accusations. This will all pass.”
Nonetheless, Gruttadoro decided it was best to err on the side of caution and the family found another location. He also received no further contact from Wintergarden staff.
“I highly doubt we’ll ever get that $5,000,” he said.
— Gary Craig is a seasoned journalist with the Democrat and Chronicle, covering courts and crime and more. You can reach Craig at gcraig@rocheste.gannett.com. He is the author of two books, including “Seven million: a cop, a priest, an IRA soldier and the still unsolved Rochester Brink heist.“