Carmine Agnello, grandson of the notorious mob boss John Gotti, has been sentenced to 15 months in prison for his role in a $1.1 million Covid relief fund scam, in which he fraudulently obtained disaster relief loans and invested a substantial amount in cryptocurrency. According to the Department of Justice, Agnello submitted false information to the Small Business Administration between April 2020 and November 2021, claiming the funds were for his autoparts and recycling business in Queens.
Instead, he diverted approximately $420,000 into a cryptocurrency business. The US Attorney's Eastern District of New York office stated that Agnello's actions were a shameful exploitation of government and taxpayer dollars during the height of the pandemic. This 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. 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. John Gotti, Agnello's grandfather, was a powerful figure in the Gambino crime family, with estimated annual earnings of $500 million from various illicit ventures, including extortion, gambling, and stock fraud.
He was found guilty on 13 criminal counts in 1992 and died in federal prison at the age of 61.