Grandson of Notorious Mob Boss John Gotti Sentenced to Prison for Covid Relief Fraud and Crypto Scheme

Carmine Agnello, grandson of the notorious 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 partially used to invest 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 under false pretenses and utilized the funds for personal gain, including investing approximately $420,000 in a cryptocurrency business. The grandson of the infamous mob boss submitted false information to the SBA between April 2020 and November 2021, claiming the funds were intended for his autoparts and recycling business in Queens, including employee salaries.

Agnello is scheduled to begin his prison sentence on July 1. According to United States Attorney Joseph Nocella, '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.' The US Postal Inspection Service, New York Division, also condemned Agnello's actions, stating that 'Mr. Agnello defrauded a program designed to assist businesses and employees during the pandemic.' This case is not an isolated incident, as numerous individuals have been convicted of defrauding the government's Covid relief fund, including Bruce Choi, who illegally obtained $2 million in pandemic-related business loans to purchase cryptocurrency, and David T.

Hines, who fraudulently obtained $3.9 million and used some of the proceeds to buy a Lamborghini. According to statistics from the US Government Accountability Office, fraud against Covid-related relief funds has been widespread, with an estimated $135 billion lost to scams. Agnello's grandfather, John Gotti, was a notorious figure who wielded power through brutal violence and was eventually convicted on 13 criminal counts, dying in federal prison at the age of 61.