Earlier today, David Motovich was sentenced to 15 years in prison by United States District Judge William F. Kuntz, II in Brooklyn federal court. Motovich was found guilty of operating an illegal money transmitting business, failing to file currency transaction reports, bank fraud, conspiracy to commit bank fraud, money laundering, aggravated identity theft, and conspiracy to defraud the United States. The sentence also includes forfeiture of approximately $38 million in assets such as a Manhattan penthouse with a private indoor pool, commercial real estate in Brooklyn’s Midwood neighborhood, and luxury items.
Motovich’s conviction followed a three-week jury trial held in July 2024. The case was announced by Joseph Nocella, Jr., U.S. Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge at the FBI New York Field Office; and Harry T. Chavis, Jr., Special Agent-in-Charge at IRS-Criminal Investigation New York.
“The defendant used his family-run lumber business to orchestrate a massive illegal check cashing scheme and facilitate rampant tax evasion in the New York City construction industry,” stated United States Attorney Nocella. “The defendant put his own greed and thirst for luxury above the needs of helpless victims, whose identities, company names, and signatures he ruthlessly stole. The defendant’s significant sentence should send a message that fraud does not pay, and federal banking and tax rules apply to all.”
“David Motovich allegedly deposited more than $55 million into accounts he opened in the names of other individuals to selfishly fund an unearned lavish lifestyle, by swindling unsuspecting victims and companies,” stated FBI Assistant Director in Charge Raia. “The FBI will relentlessly pursue those individuals who not only deceive others, but also defraud the United States for their own personal gain.”
“David Motovich made millions from his shady business, making back-office deals to hide cash for clients,” stated IRS-CI Special Agent in Charge Chavis. “While trying to conceal more that $55 million from the U.S. government, Motovich adorned himself with watches and jewelry and luxury cars. Now, after today’s sentencing, he will have years to think of his actions as he lives in less luxurious federal housing. There is no penthouse with a pool available.”
Court records show that Motovich used his family-operated Midwood Lumber business on Coney Island Avenue as a front for an unlicensed check-cashing operation targeting construction company owners and operators seeking off-the-books payrolls. Customers paid fees between four and 15 percent—higher than licensed businesses—because Motovich did not report large transactions as required by anti-money laundering laws.
To further disguise these activities from authorities such as the New York State Workers Compensation Board or tax officials if audited, Motovich provided fraudulent documents making it appear payments were for materials or subcontracting work.
He created shell companies so customers could write checks payable to these entities instead of directly paying workers or vendors. These checks were then deposited into various bank accounts set up under different names—including those belonging to unwitting individuals—to avoid detection.
In one example cited during proceedings, Motovich stole a worker’s identity and bribed a banker to open accounts under that name through which millions were funneled; in another instance he impersonated legitimate companies’ names when opening shell accounts.
Between 2012 and 2019 over $55 million was deposited into these accounts; funds were spent on real estate purchases (including renovations), personal expenses such as credit card bills or life insurance premiums for himself and relatives; luxury goods like diamonds or vehicles including Porsche and Lexus models; as well as other ventures.
Three co-defendants—Marina Kuyan, Kemal Sarkinovic, Joshua Markovics—have pleaded guilty related charges are awaiting sentencing.
The prosecution was handled by Assistant U.S. Attorneys Erik Paulsen, Andrew Grubin,and Matthew Skurnik from the Public Integrity Section with support from Paralegal Specialist Daniel Arakawa.
DAVID MOTOVICH
Age: 50
New York
E.D.N.Y Docket No.: 21-CR-497 (WFK)
