Grandson of Notorious Mob Boss John Gotti Sentenced to Prison for Covid-19 Relief Fraud and Crypto Scheme

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 fraud scheme, in which he invested a significant portion of the funds in cryptocurrency. According to the Department of Justice, Agnello fraudulently obtained multiple disaster relief loans from the Small Business Administration, claiming the funds were for his autoparts and recycling business in Queens. However, he diverted approximately $420,000 of the proceeds to invest in a cryptocurrency business. The fraud occurred between April 2020 and November 2021, during which time Agnello submitted false information to the SBA, including claims that the funds were for employee salaries. The US Attorney's Eastern District of New York office stated that Agnello's actions were a shameful exploitation of government and taxpayer dollars, which he must repay as part of his sentence. This 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, and David T. Hines, who fraudulently obtained $3.9 million from similar relief funds. According to statistics from 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 activities, including extorting unions, illegal gambling, loan-sharking, and stock fraud.