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 program out of $1.1 million, with a substantial portion of the funds being invested in cryptocurrency ventures, according to the Department of Justice. In a statement, the US Attorney's Office for the Eastern District of New York revealed that Agnello had 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. Agnello submitted false information to the SBA between April 2020 and November 2021, stating the funds were for employee salaries and business expenses. The US Attorney, Joseph Nocella, condemned Agnello's actions, stating that he had 'shamefully lined his own pockets with government and taxpayers' dollars' during the pandemic. Agnello's case is not an isolated incident, as numerous individuals have been caught defrauding the government's COVID-19 relief fund, including Bruce Choi, who obtained $2 million in pandemic-related business loans for non-existent companies, and David T.
Hines, who fraudulently obtained $3.9 million and used some of the funds to purchase a Lamborghini. According to the US Government Accountability Office, an estimated $135 billion, or up to 15% of the total COVID-19 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 ventures, including extortion, illegal gambling, loan-sharking, and stock fraud.