Grandson of Notorious Mob Boss John Gotti Faces Prison Time for Covid-19 Relief Fraud and Crypto Investment Scheme

Carmine Agnello, the grandson of notorious mob boss John Gotti, has received a 15-month prison sentence for his role in a $1.1 million Covid-19 relief fund fraud scheme, in which he invested a substantial amount in cryptocurrency, 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 and diverted the funds for personal use, including a $420,000 investment in a cryptocurrency business. Between April 2020 and November 2021, Agnello submitted false information to the SBA, claiming the funds were for his autoparts and recycling business in Queens, including employee salaries. US Attorney Joseph Nocella condemned Agnello's actions, stating that he had 'shamefully lined his own pockets with government and taxpayers' dollars' during the Covid-19 pandemic. Agnello is not the only individual to have been caught defrauding the government's Covid relief fund, with other notable cases including Bruce Choi, who illegally obtained $2 million in pandemic-related business loans to buy cryptocurrency, and David T. Hines, who fraudulently obtained $3.9 million and used some of the proceeds to purchase a Lamborghini. According to the US Government Accountability Office, fraud against Covid-related relief funds has resulted in the loss of approximately $135 billion. Agnello's grandfather, John Gotti, was a powerful figure in organized crime, earning an estimated $500 million annually from various illicit ventures, including extortion, gambling, loan-sharking, and stock fraud, before being sentenced to federal prison in 1992, where he died of cancer at the age of 61.