Carmine Agnello, the grandson of notorious mob boss John Gotti, has been sentenced to 15 months in prison for his role in a Covid-19 relief fund scam, in which he fraudulently obtained $1.1 million from the US government's Small Business Administration. According to the Department of Justice, Agnello used the ill-gotten funds to invest in cryptocurrency, among other personal expenses.
The US Attorney's Eastern District of New York office revealed that Agnello submitted false information to secure multiple disaster relief loans, claiming the funds were for his autoparts and recycling business in Queens. Instead, he diverted approximately $420,000 into a cryptocurrency business. Agnello's actions were widely condemned, with United States Attorney Joseph Nocella stating that he 'shamefully lined his own pockets with government and taxpayers' dollars' during a time of great need.
The case is just one of many instances of Covid-19 relief fund fraud, with statistics from the US Government Accountability Office suggesting that up to 15% of the total funds were lost to scams. Agnello's grandfather, John Gotti, was a notorious figure who wielded significant power through violence and intimidation, earning an estimated $500 million annually from his various ventures.
He was eventually found guilty on 13 criminal counts and died in federal prison in 1992.