Carmine Agnello, the grandson of notorious mob boss John Gotti, has received a 15-month prison sentence for his role in a $1.1 million Covid-19 relief fund scam, with at least half of the funds being invested in cryptocurrency, according to the Department of Justice. The US Attorney's Eastern District of New York office revealed that Agnello secured multiple disaster relief loans from the Small Business Administration under false pretenses and used the proceeds to invest in cryptocurrency.
Approximately $420,000 of the funds were diverted for personal use, including investment in a cryptocurrency business. Agnello submitted false information to the SBA between April 2020 and November 2021, claiming the funds were for his autoparts and recycling business in Queens, including employee salaries. The fraud occurred during the height of the Covid-19 pandemic, with Agnello set to begin his prison sentence on July 1. US Attorney Joseph Nocella stated that Agnello 'shamefully lined his own pockets with government and taxpayers' dollars, which he must repay as part of today's sentence.' The US Postal Inspection Service, New York Division, noted that Agnello '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 found guilty of 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 secured $3.9 million from relief funds and purchased 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 violence and was involved in various illicit activities, including extorting unions, illegal gambling, loan-sharking, and stock fraud, before being sentenced to federal prison, where he died of cancer at the age of 61.