Carmine Agnello, grandson of the notorious mob boss John Gotti, has been sentenced to 15 months in prison for his role in defrauding the US government's Covid-19 relief funding system of $1.1 million, with at least half of the funds invested in cryptocurrency, according to the Department of Justice. The US Attorney's Office for the Eastern District of New York stated that Agnello obtained multiple disaster relief loans through fraudulent means and used the proceeds for personal gain, including investing approximately $420,000 in a cryptocurrency business. Between April 2020 and November 2021, Agnello submitted false information to the Small Business Administration, claiming the funds were for his autoparts and recycling business in Queens, including employee salaries. The US Attorney, Joseph Nocella, expressed outrage at Agnello's actions, stating that he 'shamefully lined his own pockets with government and taxpayers' dollars' during the height of 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 statistics from the US Government Accountability Office, fraud against Covid-related relief funds has resulted in losses of up to $135 billion, or approximately 15% of the total funds. Agnello's grandfather, John Gotti, was a notorious figure who exerted power through brutal violence and was eventually found guilty on 13 criminal counts, dying in federal prison at the age of 61.