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 proceeds partially invested in cryptocurrency. According to the Department of Justice, Agnello submitted false information to obtain multiple disaster relief loans from the Small Business Administration, claiming the funds were for his autoparts and recycling business in Queens. Instead, he diverted approximately $420,000 to invest in a cryptocurrency business. The fraud occurred between April 2020 and November 2021, with Agnello set to begin his prison term on July 1.
The case is one of several involving individuals who have defrauded the government's Covid relief fund, with estimates suggesting up to 15% of the total funds were lost to scams. Agnello's grandfather, John Gotti, was a powerful figure in organized crime, earning an estimated $500 million annually from extortion, gambling, loan-sharking, and stock fraud before his conviction and death in prison.