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Gotti’s Grandson Sentenced for Fraudulent COVID Loan Scheme

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Presale Analyst & ICO Researcher

A presale and tokenomics specialist, Sofia evaluates new crypto projects with the analytical rigor of her Bocconi background. Having reviewed over 200 launches, she excels…

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Carmine G. Agnello Jr., connected to the notorious Gambino crime family through his grandfather John J. Gotti, received a 15-month prison sentence for his role in defrauding the Small Business Administration (SBA) out of $1.1 million intended for COVID-19 relief. This sentence was handed down by U.S. District Judge Nusrat J. Choudhury in a federal court located in Central Islip, New York, on April 20, 2026.

In addition to the prison time, Agnello has been ordered to pay restitution of $1,268,302 to the SBA and will be subjected to two years of supervised release post-incarceration. He is also required to complete 100 hours of community service. Notably, this sentence fell short of the federal guidelines, which suggested a range of 31 to 44 months.

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Agnello was the proprietor of Crown Auto Parts and Recycling, LLC, based in Jamaica, Queens. Between April 2020 and November 2021, he submitted multiple fraudulent applications for Economic Injury Disaster Loans under the CARES Act, which provided financial assistance to businesses impacted by the pandemic. He successfully obtained the full amount of $1.1 million.

To secure these funds, Agnello misrepresented key information, including the size of his workforce and the intended use of the loan. He falsely claimed a clean criminal record, despite having been convicted of a misdemeanor in New York just two years prior. The funds, instead of being allocated for business operations, were funneled into personal investments, particularly around $420,000 which was diverted to a cryptocurrency venture.

In September 2024, Agnello pleaded guilty to a charge of wire fraud, which could have carried a maximum penalty of 30 years. During the sentencing hearing, his defense raised personal factors, including his history as a kidney donor to his mother, Victoria Gotti. Following the proceedings, Agnello reportedly remarked to reporters that while the situation was difficult, it could have been worse.

The U.S. Attorney for the Eastern District of New York, Joseph Nocella Jr., emphasized that the actions of Agnello constituted a blatant misuse of taxpayer resources during a critical time of need. He indicated that ongoing efforts would be made to address and prosecute fraud related to pandemic relief.

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Further highlighting the severity of the offense, U.S. Postal Inspection Service Inspector in Charge Ketty Larco-Ward underscored the collaborative investigative work between law enforcement agencies in this case. The investigation received assistance from Homeland Security Investigations.

Agnello gained some notoriety as a reality television figure in the mid-2000s through the A&E series “Growing Up Gotti,” which showcased the family life of his grandfather, John Gotti. Known for his flamboyant public persona, John Gotti became infamous as a leader in organized crime, earning the nicknames “Dapper Don” and “Teflon Don” for his ability to evade conviction on multiple charges in his earlier years.

Despite his family’s notorious legacy, Agnello’s current legal troubles are unrelated to organized crime matters. The specific cryptocurrency business into which he invested has not been disclosed in any court documents. Prior to sentencing, his defense team argued that his cryptocurrency activities were linked to a gambling addiction, which Agnello has reportedly been working to address through treatment.

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Sofia Russo

verified
Presale Analyst & ICO Researcher

A presale and tokenomics specialist, Sofia evaluates new crypto projects with the analytical rigor of her Bocconi background. Having reviewed over 200 launches, she excels at identifying genuine opportunities and potential red flags for investors.

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Sofia Russo
588 articles Since 2026
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