Grandson of Notorious Mob Boss John Gotti Sentenced to Prison for $1.1 Million COVID Relief Scam and Crypto Investment Scheme

Carmine Agnello, the grandson of notorious mob boss John Gotti, has been sentenced to 15 months in prison for perpetrating a $1.1 million COVID relief funding scam, with the proceeds partially used to invest in cryptocurrency, according to the Department of Justice. In a statement, the US Attorney's Office for the Eastern District of New York revealed that Agnello fraudulently obtained multiple disaster relief loans from the Small Business Administration and utilized the funds for personal gain, including investing approximately $420,000 in a cryptocurrency venture. The statement noted that 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 stated that during the height of the pandemic, Agnello 'shamefully lined his own pockets with government and taxpayers' dollars,' which he must repay as part of his sentence. The US Postal Inspection Service also condemned Agnello's actions, stating that he 'defrauded a program designed to assist businesses and employees during the pandemic.' Agnello's case is not isolated, as several 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 proceeds 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 significant fortune through various illicit enterprises, including extorting unions, engaging in illegal gambling, loan-sharking, and stock fraud. In 1992, Gotti was convicted on 13 criminal counts and sentenced to federal prison, where he died of cancer at the age of 61.