Judge rules mortgage lender can proceed with Crescent Beach foreclosure

Listen to this article

Casciani Construction Co. and the firm’s president, John Casciani, have been given the legal go-ahead to foreclose on the Crescent Beach Restaurant property.

State Supreme Court Justice Daniel J. Doyle on Wednesday granted Casciani Construction’s request for summary judgment, clearing the way for foreclosure to proceed on the in-default mortgage.

Restaurateur Katherine Mott-Formicola and business partner Robert C. Harris executed a $1.7 million mortgage from Casciani Construction on Sept. 2, 2023, to buy the long-vacant restaurant at 1372 Edgemere Dr. in Greece, as well as seven neighboring properties.

Mott intended to refurbish the well-worn property, which sits on the shore of Lake Ontario and for decades had been a landmark restaurant until it closed in 2012.

But remodeling work by Genesee Construction Services, Inc. of Dansville ended when Mott was accused by Five Star Bank in March of 2024 of operating a check-kiting scheme that cost the bank $19 million.

Nine months later, Mott entered a guilty plea in federal court to financial institution fraud and money laundering. Since then, her sentencing has been postponed four times — the latest rescheduling came earlier this month — as she continues to cooperate in some manner with government prosecutors.

The Crescent Beach property now sits vacant and its future is very much in doubt until the criminal and civil cases come to fruition. One prospective sale fell through in September and other potential buyers have done preliminary due diligence before walking away.

Webster-based Casciani Construction first filed a foreclosure action in March of 2025, calling due the balance of $1.5 million after no payment had been received since September of 2024.

Genesee Construction Services, however, objected. The contractor filed a mechanic’s lien and contended in a court filing that its claim for just shy of $542,000 in unpaid construction bills should have priority.

In its motion, the contractor argued that the mortgage issued by Casciani Construction actually was a construction loan and not a purchase mortgage, and thereby should take a backseat to the contractor’s mechanic’s lien.

But in granting summary judgment, Justice Doyle wrote Casciani Construction provided proof that the loan was unequivocally used for the purchase of the Crescent Beach property.

“Plaintiff has met its initial burden in establishing that the funds advanced by plaintiff were used to purchase the subject property, and that no funds were advanced for construction of improvements on the property,” the ruling said. “Genesee has submitted no evidence that creates an issue of fact.”

[email protected]/(585) 653-4020