Mob Boss John Gotti’s Grandson Sentenced for $1.1M COVID Relief Fraud Tied to Crypto Investments

Carmine Agnello, grandson of notorious mob boss John Gotti, has been sentenced to 15 months in federal prison after defrauding the U.S. government’s COVID-19 relief program out of approximately $1.1 million. According to the U.S. Attorney’s Office for the Eastern District of New York, Agnello fraudulently secured multiple Small Business Administration (SBA) disaster relief loans and redirected the funds for personal gain, including significant cryptocurrency investments.

Prosecutors revealed that Agnello submitted false applications between April 2020 and November 2021, claiming the funds would support his Queens-based auto parts and recycling business. Instead, he diverted the money for personal use, investing around $420,000 into a cryptocurrency venture. Authorities emphasized that the funds were intended to help struggling businesses and employees during the height of the pandemic.

U.S. Attorney Joseph Nocella condemned the scheme, stating that Agnello “shamefully lined his own pockets with government and taxpayers’ dollars.” As part of his sentence, Agnello is required to repay the stolen funds. He is scheduled to surrender for imprisonment on July 1.

Law enforcement officials highlighted that this case is part of a broader pattern of widespread COVID relief fraud. The U.S. Government Accountability Office estimates that up to $135 billion—roughly 15% of total pandemic relief funds—may have been lost to fraudulent activity. Similar cases include Bruce Choi, who illegally obtained $2 million in loans for fake businesses and used the funds to purchase cryptocurrency, and David T. Hines, who fraudulently secured $3.9 million and spent some of it on luxury items like a Lamborghini.

The case also draws attention due to Agnello’s family background. His grandfather, John Gotti, once led the Gambino crime family and was convicted in 1992 on multiple criminal charges. The latest conviction underscores ongoing concerns about financial fraud, misuse of relief funds, and the intersection of crime and cryptocurrency.