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 relief funding system of $1.1 million, with the proceeds being used to invest in cryptocurrency, according to the Department of Justice. In a statement released on Monday, the US Attorney's Eastern District of New York office revealed that Agnello had fraudulently obtained multiple disaster relief loans from the government's Small Business Administration and used the funds for cryptocurrency investments.
It was stated that Gotti's grandson had 'diverted the proceeds for his personal use, including by investing approximately $420,000 in a cryptocurrency business.' Agnello, who is set to begin his prison term on July 1, had submitted false information to the SBA between April 2020 and November 2021, claiming the funds were for his autoparts and recycling business in Queens, including for employee salaries. 'During the height of the COVID-19 pandemic, the defendant shamefully lined his own pockets with government and taxpayers' dollars, which he must repay as part of today's sentence,' said United States Attorney Joseph Nocella. 'Mr.
Agnello defrauded a program designed to assist businesses and employees during the pandemic,' stated United States Postal Inspection Service, New York Division Inspector in Charge Larco-Ward. Agnello is not the only individual to have defrauded the government's Covid relief fund, with several high-profile cases resulting in court action. According to statistics from the US Government Accountability Office, fraud against Covid-related relief funds was widespread, with approximately $135 billion, or up to 15% of the total funds, lost to scams.
Agnello's grandfather was known for his brutal violence and high-profile lifestyle, running the Gambino crime family and earning an estimated $500 million annually from ventures including union extortion, illegal gambling, loan-sharking, and stock fraud. In 1992, Gotti was found guilty on 13 criminal counts and sentenced to federal prison, where he died of cancer at the age of 61.