Carmine Agnello, the grandson of late mob boss John Gotti, was sentenced to 15 months in federal prison on Monday for defrauding a COVID-19 relief program. The 39-year-old pleaded guilty to lying on loan applications and illegally obtaining $1.1 million in federal funds. In addition to prison time, Agnello must pay $1.26 million in restitution, complete 100 hours of community service, and undergo mental health treatment for issues including gambling addiction. He will also serve two years of supervised release after his prison term. Agnello must surrender by July 20.
Fraud Scheme Details
Between April 2020 and November 2021, Agnello submitted false information to the Small Business Administration (SBA) on behalf of his Queens-based company, Crown Auto Parts & Recycling LLC. Prosecutors allege he misrepresented employee numbers and the intended use of funds, diverting the money for personal expenses, including a $420,000 investment in a cryptocurrency business. The company had ceased operations before Agnello received the bulk of the loan funds.
Legal and Public Response
Prosecutors had sought a longer sentence of 33 to 41 months, but Judge Nusrat Choudhury imposed the shorter term after Agnello expressed remorse, calling his actions "wrong, selfish, and criminal." The U.S. Attorney for the Eastern District of New York, Joseph Nocella, condemned the fraud, stating Agnello "shamefully lined his own pockets with government and taxpayers' dollars."
Background and Context
Agnello, known for his appearance on the A&E series Growing Up Gotti, had previously sought to avoid prison by donating a kidney to his mother, Victoria Gotti, the daughter of the late Gambino crime family boss. However, the donation did not occur, and the judge proceeded with sentencing.
Long-Term Implications
The case highlights ongoing efforts to crack down on COVID-19 relief fraud, with prosecutors emphasizing the need to hold accountable those who exploited the pandemic for personal gain. The SBA has recovered billions in fraudulent loans, but cases like Agnello’s underscore the challenges in preventing abuse of emergency funding programs.