Former Rochelle city employee accused of defrauding a non-profit association

Local News

ROCKFORD, Ill. (WTVO) — The U.S. Department of Justice has charged former City of Rochelle employee Scott Koteski, 58, with wire fraud for allegedly stealing $150,000 from a non-profit business association.

According to the DOJ, Koteski was selected by the City to sit on the board of directors of an association that provided broadband internet technology to smaller municipalities in northern Illinois.

After he was appointed treasurer in 2011, the charging documents allege that he took at least $150,000 in checks written to himself from the association’s bank account between September 2012 and April 2018. He then allegedly concealed his acts by writing false information on the memo line to make it appear the checks were reimbursements for money he had spent, authorities said.

In 2018, authorities allege that Koteski made online payments from the association’s bank account to pay off balances on his own personal credit card and to a loan financing company.

Koteski faces up to 20 years in prison if convicted, with a term of 3 years of supervised release and a fine of up to $250,000.

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