Grandson of Notorious Mob Boss John Gotti Faces Prison Time for Covid Relief Fund Scam and Crypto Investment 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 relief fund scam, with proceeds used to invest in cryptocurrency. According to the Department of Justice, Agnello fraudulently obtained disaster relief loans from the Small Business Administration and diverted the funds for personal use, including investing approximately $420,000 in a cryptocurrency business. The US Attorney's Eastern District of New York office stated that Agnello submitted false information to the SBA between April 2020 and November 2021, claiming the proceeds were for his autoparts and recycling business in Queens. The fraudster will begin his prison term on July 1 and has been ordered to repay the funds as part of his sentence. US Attorney Joseph Nocella condemned Agnello's actions, stating that he 'shamefully lined his own pockets with government and taxpayers' dollars' during the height of the pandemic. Agnello's case is not an isolated incident, as numerous individuals have been caught defrauding the government's Covid relief fund, including Bruce Choi, who obtained $2 million in pandemic-related business loans to buy cryptocurrency, and David T. Hines, who used $3.9 million in relief funds to purchase 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. Agnello's grandfather, John Gotti, was a notorious figure who exerted power through brutal violence and amassed a fortune estimated to be around $500 million annually from various illicit ventures, including extortion, gambling, and stock fraud.