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

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-19 relief fund scam, with a significant portion 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, diverting the funds for personal use, including a $420,000 investment in a cryptocurrency business. The fraudulent activities took place between April 2020 and November 2021, during which Agnello submitted false information to the SBA, claiming the funds were for his autoparts and recycling business in Queens. US Attorney Joseph Nocella condemned Agnello's actions, stating that he 'shamefully lined his own pockets with government and taxpayers' dollars' 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 illegally obtained $2 million in pandemic-related business loans to buy cryptocurrency, and David T. Hines, who fraudulently obtained $3.9 million and used some of the funds 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 fortune estimated to be around $500 million annually from various illicit ventures, including extortion, illegal gambling, loan-sharking, and stock fraud.