Carmine Agnello, the grandson of notorious mob boss John Gotti, has been sentenced to 15 months in prison for his role in a $1.1 million Covid relief fund scam, with proceeds partially invested in cryptocurrency, according to the Department of Justice. In a statement, the US Attorney's Eastern District of New York office revealed that Agnello secured multiple disaster relief loans from the Small Business Administration by submitting false information between April 2020 and November 2021.
He claimed the funds were for his Queens-based autoparts and recycling business, including employee salaries. However, Agnello diverted approximately $420,000 of the proceeds to invest in a cryptocurrency business. The fraud occurred during the height of the Covid-19 pandemic, with Agnello set to begin his prison term on July 1.
US Attorney Joseph Nocella stated that Agnello's actions were shameful, as he used government and taxpayer dollars for personal gain. The case is part of a larger issue, with the US Government Accountability Office estimating that up to 15% of Covid-related relief funds, roughly $135 billion, were lost to scams.
Agnello's grandfather, John Gotti, was a powerful figure in organized crime, earning an estimated $500 million annually from various ventures, including extortion, gambling, and stock fraud, before his conviction and death in federal prison.