A Brooklyn businessman has received a hefty sentence for orchestrating a multifaceted illegal check cashing and tax evasion scheme. David Motovich, the owner of a family-run lumber business in Midwood, was sentenced to 15 years in federal prison, according to an announcement on the United States Attorney's Office for the Eastern District of New York website. The presiding United States District Judge William F. Kuntz, II handed down the punishment and ordered Motovich to forfeit approximately $38 million in ill-gotten assets, including high-end real estate and luxury goods.
Charged with bank fraud, money laundering, and tax evasion among other offenses, Motovich was said to have funneled over $55 million through various shell accounts, exploiting identities and companies in the process. "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," United States Attorney Joseph Nocella, Jr. stated on the Justice Department's website. The labyrinthine fraud was anchored in Midwood Lumber on Coney Island Avenue, crafting a facade of legitimacy to his clients in the construction sector.
The investigation, led by the FBI and IRS-CI, brought to light Motovich's sophisticated tactics used to bypass anti-money laundering laws and filing requirements. "David Motovich made millions from his shady business, making back-office deals to hide cash for clients," IRS-CI Special Agent in Charge Harry T. Chavis, Jr. told the Justice Department. Despite the intricate web Motovich wove, the promise of high-end luxury proved to be transient as the federal court extinguished his freedom and financial standing.
Motovich's downfall was precipitated by his own designs, as he moved large sums while evading the bureaucratic eyes that guard against such deceit. Giving details about the case, an FBI official highlighted Motovich's unscrupulous operations. "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," Christopher G. Raia, Assistant Director in Charge, FBI New York Field Office stated to the Justice Department. As part of his sentencing, Motovich will no longer enjoy the extravagant trappings of his fraud, swapping them for a considerably less opulent cell.
While Motovich now faces the repercussions, the case also sets a warning for others in the business realm that might consider following in his missteps. Motovich's co-defendants, Marina Kuyan, Kemal Sarkinovic, and Joshua Markovics, have also pleaded guilty and are awaiting their sentences. Governed by the Public Integrity Section of the U.S. Attorney's office, with Assistant United States Attorneys Erik Paulsen, Andrew Grubin, and Matthew Skurnik leading the prosecution.
