Gotti’s Grandson Sentenced to 15 Months for COVID-19 Relief Fraud

Carmine G. Agnello Jr., the grandson of notorious mob boss John Gotti, was sentenced to 15 months in federal prison for defrauding the U.S. Minor Business Administration’s COVID-19 Economic Injury Disaster Loan program. The sentence, handed down on April 20, 2026, follows his guilty plea to submitting false loan applications and diverting more than $1 million in pandemic relief funds for personal leverage, including cryptocurrency investments.

Case Background and Charges

Agnello, who operated Crown Auto Parts & Recycling, LLC in Queens, admitted to applying for and receiving three separate EIDL loans between April 2020 and November 2021 by providing false information about his business’s employee count and the intended use of the funds. Prosecutors stated he obtained approximately $1.1 million through these fraudulent applications.

Instead of using the loans to support his business during the pandemic, Agnello diverted the proceeds for personal gain, including a $420,000 investment in cryptocurrency. He pleaded guilty in 2024 to charges related to the fraud scheme.

Sentencing Details

United States District Judge Nusrat J. Choudhury sentenced Agnello to 15 months in prison, a reduction from the potential three-year term he initially faced. In addition to incarceration, the judge ordered him to serve two years of supervised release and pay $1,268,302 in restitution to the government.

Agnello’s legal team had argued for a non-custodial sentence, citing his mother’s serious health condition and his offer to donate a kidney. Judge Choudhury acknowledged these circumstances but determined that a prison sentence was warranted given the scale of the fraud.

Context and Broader Implications

This case is part of a wider federal effort to combat fraud in pandemic relief programs. Agnello becomes the 16th member of his extended family to serve time in prison. His attorney, Jeffrey Lichtman, noted that the actual time served may be shorter due to potential early release credits, estimating four to five months behind bars.

In court, Agnello acknowledged his actions, stating the fraud was “wrong, selfish and criminal,” and expressed regret for the harm caused to public trust and taxpayer-funded relief efforts.

Conclusion

The sentencing of Carmine G. Agnello Jr. Underscores the Justice Department’s continued enforcement against abuse of emergency financial aid programs. While he avoids the maximum penalty, the conviction and financial penalties reflect the seriousness of exploiting federal relief mechanisms intended to support struggling businesses during a national crisis.