Earlier today, David Motovich was sentenced to 15 years in prison by United States District Judge William F. Kuntz, II in federal court in Brooklyn. Motovich was convicted 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 conviction followed a three-week jury trial in July 2024.
In addition to the prison term, Judge Kuntz ordered Motovich to forfeit approximately $38 million. This includes his interests in a penthouse apartment on Manhattan’s Upper East Side with a private indoor swimming pool, commercial real estate buildings in Brooklyn’s Midwood neighborhood, as well as luxury jewelry and handbags.
United States Attorney Joseph Nocella, Jr., FBI Assistant Director in Charge Christopher G. Raia, and IRS-CI Special Agent-in-Charge Harry T. Chavis, Jr., announced the sentence.
“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 proceedings showed that Motovich operated an unlicensed check-cashing operation through his family-run business located on Coney Island Avenue in Brooklyn’s Midwood section. He provided services mainly to construction company owners who needed off-the-books payrolls funded by cashing millions of dollars’ worth of checks for fees between four and fifteen percent—higher than licensed check-cashing businesses—because he did not file required Suspicious Activity Reports or Currency Transaction Reports for transactions over $10,000.
Motovich supplied fraudulent documents so customers could disguise these payments if audited by state or tax authorities. He created shell companies to facilitate illegal activity and evade taxes by depositing customer checks into accounts at various banks under different names.
To avoid detection and conceal ownership of funds, Motovich opened accounts using stolen identities or forged signatures—including impersonating legitimate companies or individuals such as insurance brokers—and sometimes bribed bankers.
Between 2012 and 2019, more than $55 million was deposited into these accounts controlled by Motovich but registered under others’ names. He used these funds for personal purchases including real estate acquisitions; credit card payments; buying diamonds, watches, jewelry; clothing; lease or purchase payments on luxury vehicles like Porsche and Lexus; life insurance premiums; renovating his penthouse apartment; and funding other ventures.
Co-defendants Marina Kuyan, Kemal Sarkinovic, and Joshua Markovics have pleaded guilty on related charges and are awaiting sentencing.
The case was prosecuted by Assistant United States Attorneys Erik Paulsen, Andrew Grubin, Matthew Skurnik from the Office’s 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)
