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 the proceeds partly used to invest 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 for personal gain, including investing approximately $420,000 in a cryptocurrency business. Between April 2020 and November 2021, 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 condemned Agnello's actions, stating that he had 'shamefully lined his own pockets with government and taxpayers' dollars' during the pandemic. Agnello is not the only individual to have been caught defrauding the government's Covid relief fund, with other notable cases including Bruce Choi, who illegally obtained $2 million in pandemic-era business loans to buy cryptocurrency, and David T. Hines, who used relief 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 through various illicit ventures, including extortion, gambling, and stock fraud, before being convicted and sentenced to prison, where he died of cancer at the age of 61.