A Brooklyn business owner has been convicted of using his family’s company to launder more than $55 million–money that he used to fund extravagant purchases, including an Upper East Side penthouse apartment.
Following a lengthy investigation by the FBI and IRS, David Motovich, 49, was indicted on 16 counts including money laundering, bank fraud, conspiracy to defraud the United States and aggravated identity theft. He’ll face up to 30 years in prison.
The prosecution proved that Motovich ran an illegal check-cashing operation out of his family business, Midwood Lumber. The scheme involved clearing millions in funds for construction company operators to fund off-the-books payroll. Motovich earned substantial fees from his customers by agreeing to not file Suspicious Activity Reports or Currency Transaction Reports, which are required by law for sums in excess of $10,000. Motovich was first charged in 2021.
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A press release from the Eastern District of New York Attorney’s Office indicates Motovich laundered more than $55 million through accounts he created in other people’s names. The money funded a number of large purchases including Porsche and Lexus vehicles, diamonds, watches, jewelry, and a lavish renovation to his UES penthouse apartment which included the addition of a swimming pool.
“Motovich made millions from his back office deals, cashing checks for clients who paid more in fees just to know their transactions were hidden from the government. But we found out,” FBI Acting Assistant Director said in a statement. “Although his shady business allowed him to lease a high-end apartment with expensive renovations and luxury cars, today’s verdict will ensure that his next lease is only for a prison cell, no renovations required.”
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The worst of all is that these criminals are not being punished by society. They retain much of the money they stole and keep their old ways of life. For example, I know that the kids of this thief are still going to private schools. For example, one is going to Emet Classical Academy, 42 K $ per year. How can they still pay so much for a 6th grader’s tuition? (and why does that school still enroll them). Corruption!