Prosecutors Can Leverage Luxury Spending in Brooklyn Fraud Trial

Federal prosecutors can offer evidence about the wealth, spending, and lifestyle of a New York man allegedly behind an illegal check-cashing business, a federal trial court said.

David Motovich, owner of a Brooklyn lumber yard, was arrested and charged with aggravated identity theft, bank fraud, and witness tampering for his alleged scheme to help construction businesses avoid paying employment taxes. He cashed millions of dollars in checks and, for a fee, would provide fraudulent invoices, certificates, and purposefully not file currency transaction reports, the US said.

The government will be allowed to introduce evidence concerning Motovich’s purchase of luxury goods, ...