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A Brooklyn businessman whose off-the-books check-cashing network helped bankroll a lavish lifestyle — including a penthouse on the Upper East Side outfitted with its own indoor pool — has been sentenced to 15 years in federal prison.
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The sentence for 50-year-old David Motovich was handed down this week in Brooklyn federal court, marking a major development in a case East Side Feed first covered in 2024.Prosecutors with the Eastern District of New York said Motovich used his family’s business, Midwood Lumber, as a front to run an illegal check-cashing operation that funneled tens of millions of dollars through accounts he controlled behind the scenes. A jury convicted him in July on a slate of charges that included operating an unlicensed money-transmitting business, bank fraud, aggravated identity theft, money laundering, and conspiring to defraud the United States.
In addition to the prison term, Judge William F. Kuntz II ordered Motovich to forfeit roughly $38 million in assets. That includes the Upper East Side penthouse — the same apartment East Side Feed previously reported was extensively renovated using illicit proceeds — along with commercial properties in Brooklyn and high-end jewelry and handbags.
According to prosecutors, Motovich built the operation by cashing checks for construction company owners looking to pay workers off the books. He collected fees that far exceeded what licensed check-cashing businesses could legally charge — part of the appeal for customers who understood that Motovich would not file the mandatory federal reports required for cash transactions over $10,000.
Investigators said Motovich enhanced the scheme by creating shell companies and opening bank accounts under other people’s names. In one case, he stole the identity of a low-level worker and paid a banker to open accounts to move millions. In others, he forged the signatures of an insurance broker and used the names of legitimate companies without their knowledge.
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Between 2012 and 2019, more than $55 million flowed through these accounts. Prosecutors say the money funded luxury vehicles, jewelry, multimillion-dollar life-insurance premiums, credit card bills, and the dramatic renovation of his Upper East Side home — including the addition of a private indoor swimming pool.Federal officials said the sentence is meant to send a clear message. “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.
Three co-defendants — Marina Kuyan, Kemal Sarkinovic, and Joshua Markovics — previously pleaded guilty and are awaiting sentencing.
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