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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 relief system out of $1.1 million and invested at least half of it to invest in crypto businesses.
Apr 21, 2026, 7:10 p.m.
What to know:
- Carmine G. Agnello, grandson of mob boss John J. Gotti, was sentenced to 15 months in prison for fraudulently obtaining $1.1 million in Covid relief funds and investing much of it in cryptocurrency.
- Prosecutors said Agnello submitted false information to the Small Business Administration between April 2020 and November 2021, claiming the money was for his Queens auto parts and recycling business, including employee salaries.
- The case comes amid widespread fraud in pandemic aid programs, with the Government Accountability Office estimating that roughly $135 billion, or up to 15 percent of Covid relief funds, was lost to scams.
Gotti’s grandson “diverted [the proceeds] for his personal use, including by investing approximately $420,000 in a cryptocurrency business,” the attorney’s office said.
The fraudster, who will turn himself in for imprisonment on July 1, submitted false information to the SBA between April 2020 and November 2021, stating the proceeds were for his autoparts and recycling business in Queens, including for employee salaries.
“During the height of the COVID-19 pandemic, the defendant shamefully lined his own pockets with government and taxpayers’ dollars, which he must repay as part of today’s sentence,” United States Attorney Joseph Nocella said.
