Carmine Agnello, the grandson of notorious mob boss John Gotti, has been sentenced to 15 months in prison for his role in a Covid-19 relief funding scam, in which he fraudulently obtained $1.1 million from the US government's Small Business Administration and used a substantial amount to invest in cryptocurrency. According to the Department of Justice, Agnello submitted false information to secure multiple disaster relief loans, claiming the funds were for his autoparts and recycling business in Queens. Instead, he diverted approximately $420,000 into a cryptocurrency business.
The fraud occurred between April 2020 and November 2021, with Agnello set to begin his prison term on July 1. The US Attorney's Eastern District of New York office condemned Agnello's actions, stating that he 'shamefully lined his own pockets with government and taxpayers' dollars' during the height of the pandemic. This case is not an isolated incident, as numerous individuals have been found guilty of defrauding the government's Covid relief fund, with estimated losses totaling $135 billion. Agnello's grandfather, John Gotti, was a prominent figure in organized crime, accused of earning $500 million annually through illicit activities, and was ultimately convicted on 13 criminal counts in 1992.