Grandson of Notorious Mob Boss John Gotti Sentenced to Prison for Covid-19 Relief Fraud and Crypto Scheme

Carmine Agnello, the grandson of notorious mob boss John Gotti, has been sentenced to 15 months in prison for his role in a $1.1 million Covid-19 relief fund scam, with a substantial amount of the proceeds invested in cryptocurrency ventures, according to the Department of Justice. In a statement, the US Attorney's Office for the Eastern District of New York revealed that Agnello had fraudulently obtained multiple disaster relief loans from the Small Business Administration, which he then used to invest in cryptocurrency. Approximately $420,000 of the funds were diverted for personal use, including investments in a cryptocurrency business. The fraud occurred between April 2020 and November 2021, during which time Agnello submitted false information to the SBA, claiming the funds were for his autoparts and recycling business in Queens, including employee salaries. US Attorney Joseph Nocella stated that Agnello 'shamefully lined his own pockets with government and taxpayers' dollars' during the Covid-19 pandemic. The US Postal Inspection Service also condemned Agnello's actions, stating that he '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 caught defrauding the government's Covid relief fund, including Bruce Choi, who obtained $2 million in pandemic-related business loans for non-existent companies, and David T. Hines, who fraudulently obtained $3.9 million and used some of the proceeds to purchase a Lamborghini. According to the US Government Accountability Office, an estimated $135 billion, or up to 15% of the total Covid relief funds, was 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 extorting unions, illegal gambling, loan-sharking, and stock fraud. He was eventually found guilty on 13 criminal counts and sentenced to federal prison, where he died of cancer at the age of 61.