A Rotterdam homebuilder was arrested in a check scheme that police said cost Saratoga National Bank more than $1.5 million.

Paul C. Hodorowski, owner of Hodorowski Homes, is accused of orchestrating an elaborate “check kiting” scheme. This is where people write checks to one bank, drawing on funds from another bank – knowing that they have insufficient funds – but taking advantage of the delay in which transactions are processed.

The scheme took place from Dec. 1, 2023 through March 31, 2024, State Police said. It resulted in a loss to Arrow Financial Corporation, the parent firm of Saratoga National Bank and Trust Company, totaling $1,544,652.59.

Hodorowski was charged with a felony count of first-degree grand larceny. He was arraigned in the Schenectady County Court Centralized Arraignment Court and ordered held on $20,000 cash or $100,000 bond. He has posted bail.

The Schenectady County District Attorney’s Office is prosecuting the case. 

NewsChannel 13 had previously reported on a home that Hodorowski was building for a Wynantskill couple. They paid $25,000 for landscaping and were left with an unfinished front yard.