Former City of Rochelle Employee Sentenced to Two Years in Prison for Fraudulently Obtaining $150,000 From Non-Profit Business Association

 ROCKFORD — A former employee of the city of Rochelle was sentenced today in federal court before U.S. District Judge Iain D. Johnston for wire fraud. 

SCOTT KOTESKI, 58, of Rochelle, was sentenced to two years in federal prison and ordered to pay restitution in the amount of $150,332.17. 

Koteski pleaded guilty to the wire fraud charge on March 9, 2021.  According to a plea agreement, starting in 2011, Koteski was selected to sit on the board of directors of a non-profit business association and serve as the association's treasurer.  As treasurer, Koteski handled the invoicing and billing of the member municipalities, and as of February 2012, Koteski had signatory authority on the association’s bank account.  From September 2012 through April 2018, Koteski fraudulently obtained from the association at least $150,000, which he used for his own benefit without the association’s knowledge or consent.  Koteski wrote numerous checks to himself from the association’s bank account, and he deposited the checks into his personal bank account for his personal benefit.  Koteski concealed his acts by writing false information on the memo line of the checks to make it appear they were for reimbursement of personal monies Koteski spent for the association when, in fact, Koteski was not entitled to reimbursement.

Additionally, according to the plea agreement, in 2018 Koteski made online payments from the association’s bank account to pay for a personal credit card and a personal loan.

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Illinois State Police assisted in the investigation.  The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.