Carmine Agnello, the grandson of the 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. According to the Department of Justice, Agnello fraudulently obtained disaster relief loans from the Small Business Administration and used the proceeds to invest in cryptocurrency. The US Attorney's Eastern District of New York office revealed that Agnello submitted false information to secure the loans, claiming the funds were for his autoparts and recycling business in Queens. Instead, he diverted approximately $420,000 to a cryptocurrency business.
Agnello's actions were deemed 'shameful' by United States Attorney Joseph Nocella, who stated that he 'lined his own pockets with government and taxpayers' dollars' during the pandemic. The case is not isolated, as numerous individuals have been found guilty of defrauding the government's Covid relief fund, including Bruce Choi and David T. Hines, who used the funds to purchase cryptocurrency and a Lamborghini, respectively.
According to the US Government Accountability Office, an estimated $135 billion was lost to Covid-related relief fund scams. Agnello's grandfather, John Gotti, was a powerful figure in the Gambino crime family, with an estimated annual income of $500 million from various illicit activities. He was found guilty on 13 criminal counts in 1992 and died in federal prison in 2002.