Carmine Agnello, the grandson of notorious mob boss John Gotti, has received a 15-month prison sentence for his role in defrauding the US government's Covid-19 relief funding system of $1.1 million, with a substantial amount 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 by submitting false information, which he then used for personal gain, including investing approximately $420,000 in a cryptocurrency business. Agnello, who is set to begin his prison term on July 1, submitted fraudulent applications to the SBA between April 2020 and November 2021, claiming the funds were for his autoparts and recycling business in Queens, including employee salaries. According to United States Attorney Joseph Nocella, 'During the height of the COVID-19 pandemic, the defendant 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, also condemned Agnello's actions, stating that 'Mr.
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 illegally obtained $2 million in pandemic-related business loans to purchase cryptocurrency, and David T. Hines, who fraudulently obtained $3.9 million and used some of the proceeds to buy a Lamborghini.
According to the US Government Accountability Office, an estimated $135 billion, or up to 15% of the total funds, was lost to scams related to Covid-19 relief. Agnello's grandfather, John Gotti, was a notorious figure who exerted power through brutal violence and was eventually found guilty on 13 criminal counts, earning him a significant fortune through various illicit ventures, including extortion, illegal gambling, loan-sharking, and stock fraud, before his death in federal prison at the age of 61.