Former City of Rochelle Employee Pleads Guilty to Fraudulently Obtaining at Least $150,000 From a Non-Profit Business Association

ROCKFORD — A former employee of the City of Rochelle, Ill., pleaded guilty Tuesday to wire fraud for fraudulently obtaining at least $150,000 from a non-profit business association. 

SCOTT KOTESKI, 58, of Rochelle, was selected by the city to sit on the board of directors of a non-profit business association that provided broadband internet technology to smaller municipalities in northern Illinois.  According to a plea agreement, Koteski in 2011 began serving as the association's treasurer, handling the invoicing and billing of member municipalities.  Koteski as of February 2012 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, which he deposited into his personal bank account for his personal benefit.  Koteski concealed his acts by writing false information on the memo line to make it appear the checks 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, Koteski in 2018 made online payments from the association’s bank account to a credit card company to pay balances on his personal credit card, and to an online loan financing company to pay balances on a loan.

Wire fraud is punishable by a maximum sentence of 20 years in federal prison.  U.S. District Judge Iain D. Johnston set sentencing for June 29, 2021, at 10:00 a.m.

The guilty plea 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 is represented by Assistant U.S. Attorney Scott R. Paccagnini.