Carmine Agnello, the grandson of infamous 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, where he siphoned off funds intended for small businesses and invested a substantial amount in cryptocurrency. According to the Department of Justice, Agnello submitted false information to secure multiple disaster relief loans from the Small Business Administration between April 2020 and November 2021. He claimed the funds were for his autoparts and recycling business in Queens, including employee salaries.
Instead, Agnello diverted approximately $420,000 into a cryptocurrency business. The US Attorney's Eastern District of New York office stated that Agnello will begin his prison term on July 1.
US Attorney Joseph Nocella criticized Agnello's actions, saying he '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.
Statistics from the US Government Accountability Office reveal that up to 15% of the total COVID-19 relief funds, approximately $135 billion, were lost to scams. Agnello's grandfather, John Gotti, was a notorious figure known for his brutal tactics and extensive criminal empire, which included ventures such as extortion, illegal gambling, loan-sharking, and stock fraud.
He was found guilty on 13 criminal counts in 1992 and died in federal prison at the age of 61.