Grandson of Notorious Mob Boss John Gotti Sentenced to Prison for Covid-19 Relief Funds Scam and Crypto Investment Scheme

Carmine Agnello, grandson of John Gotti, has received a 15-month prison sentence for his role in defrauding the US government's Covid-19 relief funding system of $1.1 million, with at least half of the funds being invested in crypto businesses, 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. The loans were purportedly for his autoparts and recycling business in Queens, including employee salaries. However, Agnello diverted approximately $420,000 of the proceeds for personal use, including investments in a cryptocurrency business. The fraud occurred during the height of the Covid-19 pandemic, with Agnello set to begin his prison sentence on July 1. United States Attorney Joseph Nocella condemned Agnello's actions, stating that he 'shamefully lined his own pockets with government and taxpayers' dollars.' The case is not an isolated incident, as numerous individuals have been caught defrauding the government's Covid relief fund, including Bruce Choi, who obtained $2 million in pandemic-related business loans for non-existent companies and used the funds to buy cryptocurrency. According to the US Government Accountability Office, an estimated $135 billion, or up to 15% of the total Covid relief funds, was lost to scams. Agnello's grandfather, John Gotti, was a notorious figure who exerted power through brutal violence and amassed significant wealth through various illicit ventures, including extorting unions, engaging in illegal gambling, loan-sharking, and stock fraud. In 1992, Gotti was convicted on 13 criminal counts and sentenced to federal prison, where he died of cancer at the age of 61.