John Gotti’s Grandson Sentenced in $1.1 Million COVID Relief Fraud and Crypto Scheme

From April 2020 to November 2021, Carmine Agnello submitted at least three fraudulent applications under the U.S. Small Business Administration’s COVID-19 Economic Injury Disaster Loan program through Crown Auto Parts & Recycling in Queens. The program was designed to support struggling businesses, and the case highlights risks involving the review of emergency relief applications and the flow of funds.

On April 20, 2026, a federal court in the Eastern District of New York sentenced Agnello to 15 months in prison. He fraudulently obtained about $1.1 million and invested roughly $420,000 in a cryptocurrency venture. The court also ordered him to pay $1,268,302 in restitution to the SBA, complete 100 hours of community service and serve two years of supervised release after leaving prison. He must report to prison on July 20.