Mob boss John Gotti’s grandson is headed to prison for a $1.1 million Covid fraud and crypto scheme

he mob boss’ grandson defrauded the U.S. government’s Covid-19 alleviation strategy retired of $1.1 cardinal and invested astatine slightest fractional of it to put successful crypto businesses.

Apr 21, 2026, 7:10 p.m.

Carmine Agnello, the mob brag John Gotti’s grandson, was sentenced to 15 months successful situation for defrauding the U.S. government’s Covid alleviation backing strategy retired of $1.1 million, proceeds which helium utilized to put successful crypto, the Department of Justice said.

In a connection released Monday, the U.S. Attorney's Eastern District of New York bureau said Agnello fraudulently obtained aggregate catastrophe alleviation loans from the government’s Small Business Administration (SBA) and utilized the funds successful cryptocurrency investments.

Gotti’s grandson “diverted [the proceeds] for his idiosyncratic use, including by investing astir $420,000 successful a cryptocurrency business,” the attorney’s bureau said.

The fraudster, who volition crook himself successful for imprisonment connected July 1, submitted mendacious accusation to the SBA betwixt April 2020 and November 2021, stating the proceeds were for his autoparts and recycling concern successful Queens, including for worker salaries.

“During the tallness of the COVID-19 pandemic, the suspect shamefully lined his ain pockets with authorities and taxpayers’ dollars, which helium indispensable repay arsenic portion of today’s sentence,” United States Attorney Joseph Nocella said.

“Mr. Agnello defrauded a programme designed to assistance businesses and employees during the pandemic,” stated United States Postal Inspection Service, New York Division (USPIS) Inspector successful Charge Larco-Ward.

Agnello is not the lone idiosyncratic to person defrauded the government’s Covid alleviation fund. Among respective cases that ended up successful court, Bruce Choi’s stands retired as helium illegally obtained $2 cardinal successful pandemic-eric concern loans connected behalf of non-existent companies and utilized the wealth to bargain cryptocurrency via Kraken. David T. Hines fraudulently obtained $3.9 million from akin alleviation funds and utilized immoderate of the proceeds to acquisition a Lamborghini.

Based on statistic from the U.S. Government Accountability Office (GAO), fraud against Covid-related alleviation funds was rampant, with astir $135 billion, oregon up to 15% of the full funds, mislaid to scams.

Agnello’s gramps exerted powerfulness with brutal unit and enjoyed the spotlight. He took implicit the Gambino, moving enterprises that authorities claimed earned him astir $500 cardinal a twelvemonth from ventures that included extorting unions, amerciable gambling, loan-sharking and banal fraud. In 1992, Gotti was recovered blameworthy connected 13 transgression counts and sent to national prison, wherever helium died of crab astatine property 61.