Late Gambino Boss John Gotti’s Grandson Sentenced to 15 Months for $1.1M COVID Loan Fraud Tied to Crypto Firm

Key Takeaways:

• Carmine Agnello, grandson of Gambino brag John Gotti, received a 15-month national situation condemnation connected April 20, 2026.
• Agnello diverted astir $420,000 of $1.1 cardinal successful fraudulent SBA EIDL funds into a cryptocurrency business.
• U.S. Attorney Joseph Nocella Jr. signaled the Eastern District of New York volition proceed prosecuting COVID-19 alleviation fraud cases.

Gambino Family Descendant Gets Prison Time for Diverting COVID Funds Into a Crypto Company

U.S. District Judge Nusrat J. Choudhury imposed the sentence successful national tribunal successful Central Islip, New York. Agnello, 39, of Smithtown, New York, indispensable besides wage $1,268,302 successful restitution to the SBA, service 2 years of supervised merchandise pursuing his merchandise from prison, and implicit 100 hours of assemblage service. The condemnation came beneath national guidelines, which pointed to a scope of astir 31 to 44 months.

Agnello operated Crown Auto Parts and Recycling, LLC, based successful Jamaica, Queens. Between April 2020 and November 2021, helium submitted astatine slightest 3 fraudulent applications for Economic Injury Disaster Loans done the SBA’s CARES Act program, which provided low-interest exigency financing to tiny businesses wounded by the pandemic. He received the afloat $1.1 million.

Carmine Agnello, the grandson of Gambino brag John Gotti.

To get the funds, Agnello misrepresented the fig of employees astatine Crown, falsely described however the indebtedness proceeds would beryllium used, and claimed helium had nary transgression record. He had a 2018 New York State misdemeanor condemnation astatine the time. The SBA and associated fiscal institutions wired the wealth to slope accounts helium controlled. Instead of utilizing the funds for payroll, rent, oregon operating expenses, Agnello diverted the proceeds for idiosyncratic benefit, including investing astir $420,000 into a cryptocurrency business.

Agnello pleaded blameworthy connected Sept. 26, 2024, earlier Judge Choudhury to 1 number of ligament fraud. The complaint carried a maximum of 30 years successful prison. At sentencing, his defence noted idiosyncratic circumstances, including his relation arsenic a kidney donor to his mother, Victoria Gotti. After court, Agnello told NBC New York reporters, “It’s alright, it could beryllium worse.” Prosecutors framed the behaviour arsenic a deliberate misuse of payer funds during a nationalist crisis.

U.S. Attorney Joseph Nocella Jr. said the suspect “shamefully lined his ain pockets with authorities and taxpayers’ dollars” that were meant to enactment morganatic businesses and workers during the pandemic. Nocella added that his bureau would proceed to prosecute individuals who stole from the alleviation programs. U.S. Postal Inspection Service Inspector successful Charge Ketty Larco-Ward said the lawsuit showed what postal inspectors and instrumentality enforcement partners tin execute moving together. The strategy was investigated by the U.S. Postal Inspection Service, with assistance from Homeland Security Investigations.

Agnello is publically known arsenic a world TV property from the mid-2000s A&E bid “Growing Up Gotti,” which followed the household of his grandfather, John Gotti. His gramps roseate to the apical of the Gambino transgression household successful 1986 aft helping orchestrate the assassination of brag Paul Castellano extracurricular a Manhattan steakhouse successful December 1985.

Unlike astir mob leaders, Gotti embraced nationalist attention, appearing regularly successful costly suits and high-profile settings. That visibility earned him the nickname “Dapper Don” and aboriginal “Teflon Don” aft helium bushed respective national prosecutions successful the precocious 1980s. Federal prosecutors yet utilized surveillance recordings and grounds from erstwhile underboss Salvatore “Sammy the Bull” Gravano to convict him connected racketeering and execution charges successful 1992.

The erstwhile mob brag died successful situation successful 2002. Agnello’s lawsuit centers connected pandemic alleviation fraud and is unrelated to organized transgression matters involving his precocious gramps and different Gotti household members. The cryptocurrency concern that Agnello invested successful is not publically named successful immoderate authoritative tribunal documents.

According to a CBS News report, Agnello’s defence counsel stated successful a pre-sentencing memorandum that the cryptocurrency expenditures amounted to “a signifier of gambling driven by an addiction to cryptocurrency trading,” a signifier Agnello has since addressed done treatment.