Grandson of Notorious Mob Boss John Gotti Sentenced to Prison for $1.1 Million COVID-19 Relief Scam and Crypto Investment Scheme

Carmine Agnello, the grandson of John Gotti, has received a 15-month prison sentence for his role in defrauding the US government's COVID-19 relief funding system, using the proceeds to invest in cryptocurrency, according to the Department of Justice. In a statement, the US Attorney's Eastern District of New York office revealed that Agnello had obtained multiple disaster relief loans from the Small Business Administration by submitting false information between April 2020 and November 2021. He claimed the funds were for his autoparts and recycling business in Queens, including employee salaries, but instead used approximately $420,000 for personal gain, including investing in a cryptocurrency business. Agnello is scheduled to begin his prison term on July 1. US Attorney Joseph Nocella stated, 'During the height of the COVID-19 pandemic, the defendant shamefully used government and taxpayers' dollars for his own gain, which he must repay as part of today's sentence.' The US Postal Inspection Service's Inspector in Charge, Larco-Ward, added, 'Mr. Agnello defrauded a program designed to assist businesses and employees during the pandemic.' Agnello's case is not an isolated incident, as numerous individuals have been found guilty of defrauding the government's COVID-19 relief funds, including Bruce Choi, who obtained $2 million in pandemic-related business loans for non-existent companies and used the funds to buy cryptocurrency. According to the US Government Accountability Office, an estimated $135 billion, or up to 15% of the total COVID-19 relief funds, was lost to scams. John Gotti, Agnello's grandfather, was a notorious mob boss who exerted power through brutal violence and amassed a significant fortune, estimated to be around $500 million per year, from various illicit ventures, including extortion, illegal gambling, loan-sharking, and stock fraud. He was eventually found guilty on 13 criminal counts in 1992 and died in federal prison at the age of 61.