Gate News message, April 22 — Carmine Agnello, grandson of mob boss John Gotti, has been sentenced to 15 months in prison for fraudulently obtaining approximately $1.1 million in COVID-19 relief funds and diverting part of the money into crypto-related investments, according to the U.S. Department of Justice.
Between April 2020 and November 2021, Agnello submitted false applications to the U.S. Small Business Administration (SBA) for relief loans, claiming the funds would support his auto parts and recycling business. He instead misappropriated the money for personal use, with approximately $420,000 directed toward crypto investments. The U.S. Attorney’s Office for the Eastern District of New York stated that the fraud occurred during the height of the pandemic, representing a serious abuse of government aid. Agnello is scheduled to begin his sentence on July 1, 2026.
The case reflects a broader problem: the U.S. Government Accountability Office (GAO) estimates that approximately $135 billion, or about 15% of total pandemic relief funds, flowed into fraudulent schemes.
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