Carmine Agnello, grandson of the notorious John Gotti, has been sentenced to 15 months in prison for his role in a $1.1 million Covid relief fund scam, with proceeds invested in cryptocurrency, according to the Department of Justice. In a statement, the US Attorney's Eastern District of New York office revealed that Agnello secured multiple disaster relief loans from the Small Business Administration by submitting false information between April 2020 and November 2021. The loans were purportedly for his autoparts and recycling business in Queens, including employee salaries. However, Agnello diverted approximately $420,000 of the funds to invest in a cryptocurrency business.
The fraud occurred during the height of the Covid-19 pandemic, with Agnello set to begin his prison term on July 1. US Attorney Joseph Nocella condemned Agnello's actions, stating that he 'shamefully lined his own pockets with government and taxpayers' dollars.' The case is not an isolated incident, as numerous individuals have been found guilty of defrauding the government's Covid relief fund, including Bruce Choi, who obtained $2 million in pandemic-related business loans to buy cryptocurrency, and David T. Hines, who fraudulently secured $3.9 million to purchase a Lamborghini.
According to the US Government Accountability Office, up to 15% of the total Covid relief funds, approximately $135 billion, were lost to scams. Agnello's grandfather, John Gotti, was a notorious figure who exerted power through brutal violence and amassed a significant fortune through various illicit activities, including extortion, illegal gambling, and stock fraud, before being sentenced to federal prison in 1992.