Carmine Agnello, grandson of notorious mob boss John Gotti, was sentenced to a prison term of 15 months for defrauding the U.S. government’s COVID-19 relief program out of $1.1 million. According to the Department of Justice, he used these funds for cryptocurrency investments. The U.S. Attorney’s Office for the Eastern District of New York disclosed that Agnello fraudulently acquired multiple disaster relief loans from the Small Business Administration (SBA), using them for personal gain and investing about $420,000 in a crypto business.
Agnello is scheduled to surrender on July 1 for his prison term. Between April 2020 and November 2021, he submitted fraudulent information to the SBA, claiming the funds were intended for his Queens-based autoparts and recycling company to cover employee salaries.
“At the peak of the COVID-19 crisis, Agnello shamelessly exploited government and taxpayer money, which he is now obliged to repay as part of his sentence,” said United States Attorney Joseph Nocella. The New York Division Inspector in Charge of the U.S. Postal Inspection Service (USPIS), Larco-Ward, noted that “Mr. Agnello defrauded a program meant to support businesses and workers during the pandemic.”
Agnello is among numerous individuals who have defrauded COVID relief funds. Notable cases include Bruce Choi, who acquired $2 million through fraudulent business loans on behalf of nonexistent companies, using some for cryptocurrency purchases via Kraken; and David T. Hines, who illicitly secured $3.9 million from similar funds to buy a Lamborghini.
The U.S. Government Accountability Office (GAO) reports that fraud in COVID-related relief programs was widespread, with an estimated $135 billion, or up to 15% of total funds, lost to scams.
John Gotti, Agnello’s grandfather, ruled the Gambino crime family through violence and notoriety. He presided over enterprises generating approximately $500 million annually from activities such as union extortion, illegal gambling, loan-sharking, and stock fraud. Convicted on 13 charges in 1992, Gotti was imprisoned until his death from cancer at age 61.