Carmine G. Agnello has been sentenced to 15 months in prison after defrauding the US government of $1.1 million in Covid-19 relief funds and diverting a portion into cryptocurrency investments.
Prosecutors said Agnello submitted false information to the Small Business Administration between April 2020 and November 2021, claiming the funds were for his Queens-based auto parts and recycling business.
“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,”
Said Joseph Nocella.
Authorities said approximately $420,000 of the fraud proceeds were invested into a cryptocurrency-related business, while the remainder was used for personal expenses.
The case reflects a broader wave of pandemic-related fraud, with the Government Accountability Office estimating that roughly $135 billion, or up to 15% of Covid relief funds, were lost to scams.
Other high-profile cases include individuals using fraudulently obtained relief funds to buy crypto or luxury goods, underscoring gaps in oversight during the rapid rollout of aid programmes.
Agnello, grandson of notorious mob boss John J. Gotti, is scheduled to report to prison on July 1, marking another chapter in a family history tied to financial crime.