Earlier today in Brooklyn federal court, David Motovich was sentenced to 15 years in prison for running 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 was delivered by United States District Judge William F. Kuntz, II. In addition to the prison term, Motovich must forfeit about $38 million in assets, including a Manhattan penthouse with a private pool, commercial real estate in Brooklyn's Midwood neighborhood, and luxury jewelry and handbags. Motovich had been convicted by a jury after a three-week trial in July 2024.
The announcement was made by Joseph Nocella, Jr., U.S. Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge of the FBI’s New York Field Office; and Harry T. Chavis, Jr., Special Agent-in-Charge of IRS-Criminal Investigation in 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 proceedings showed that Motovich used his family’s Midwood-based lumber business as a front for an unlicensed check-cashing operation serving mainly construction company owners and operators. He cashed millions of dollars’ worth of checks—charging between four and fifteen percent per check—to help these businesses fund off-the-books payrolls while avoiding federal reporting requirements meant to prevent money laundering.
Motovich charged higher fees than licensed check cashers because his customers knew he would not submit Suspicious Activity Reports or Currency Transaction Reports on large transactions as required by law. He also provided fraudulent documents so clients could disguise payments if audited by state or tax authorities.
To further his scheme, Motovich created shell companies that allowed him and associates to evade taxes. He instructed customers to make checks payable to these entities; then deposited them into various bank accounts under false names or stolen identities—including bribing a banker at one point—and forged signatures on multiple occasions.
Between 2012 and 2019, over $55 million was deposited into such accounts controlled by Motovich but opened under others’ names. These funds were used for real estate purchases; credit card payments; buying diamonds, watches, jewelry; leasing or purchasing Porsche and Lexus vehicles; paying life insurance premiums; renovating his Manhattan penthouse; and funding additional ventures.
Co-defendants Marina Kuyan, Kemal Sarkinovic, and Joshua Markovics previously pleaded guilty related to this case and await sentencing.
The prosecution was handled by Assistant U.S. Attorneys Erik Paulsen, Andrew Grubin, Matthew Skurnik from the Public Integrity Section with assistance from Paralegal Specialist Daniel Arakawa.
Motovich is 50 years old and resides in New York City.
