David Motovich, Bank Fraud, Identity Theft and Witness Tampering, New York 2024

A businessman in Brooklyn has been charged with bank fraud, identity theft, and witness tampering, according to federal officials.

David Motovich, the principal of a lumber and construction materials business, was arrested this morning and will make his initial appearance before United States Magistrate Judge Roanne L. Mann this afternoon.

As alleged in the complaint, since at least 2012, Motovich has operated an illegal check cashing business from his office at his family-run lumber business located in the Midwood section of Brooklyn.

The customers of Motovich’s illegal check cashing business are primarily the owners and operators of construction companies who pay their employees in cash to avoid having to pay state and federal employment taxes, including taxes owed under the Federal Income Contributions Act.

As part of the scheme, Motovich cashed millions of dollars of checks for his customers in exchange for a fee or a percentage of the face amount of the checks, ranging between four and 10 percent. He supplied his check cashing customers with fraudulent documents that they could use to disguise the transactions as payments by the customers for materials and/or subcontracting work if the customers were audited by the New York State Workers Compensation Board or tax authorities.

In furtherance of his scheme, Motovich created shell companies for the sole purpose of facilitating his illegal check cashing business and instructed his customers to issue checks drawn against their business accounts and make the checks payable to one of the companies.

Motovich’s actions have resulted in a significant loss to the United States treasury, with millions of dollars in checks being cashed through his scheme.

He faces charges of bank fraud, aggravated identity theft, and witness tampering, and is expected to face serious consequences for his actions.

Acting U.S. Attorney Jacquelyn M. Kasulis stated that Motovich used a seemingly legitimate business as a front for his scheme, and that he attempted to derail the government’s investigation by tampering with witnesses.

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