Carmine G. Agnello, the grandson of infamous mafia kingpin John Gotti, has pleaded guilty to defrauding the U.S. government out of $1.1 million in COVID-19 relief funds. Agnello, 38, of Smithtown, admitted to obtaining loans through the Economic Injury Disaster Loan Program (EIDLP) during the height of the pandemic. Instead of using the funds to support his business, Crown Auto Parts & Recycling, LLC, Agnello diverted a significant portion into a cryptocurrency investment.
John Gotti, Carmine’s grandfather, was the notorious leader of the Gambino crime family, once the most powerful organized crime group in America. Known as the “Teflon Don,” Gotti managed to elude conviction in multiple high-profile trials during the 1980s before being sentenced to life in prison in 1992. The Gotti name has remained synonymous with organized crime, and it appears that the grandson is continuing the legacy, though in a more modern, white-collar fashion.
Prosecutors revealed that between April 2020 and November 2021, Agnello falsified documentation to secure three separate loans, claiming no prior criminal record and inflating the number of employees at his business. Rather than use the funds for legitimate business expenses, Agnello siphoned off approximately $420,000 to invest in cryptocurrency.
Agnello now faces up to 30 years in prison, restitution of $940,000, and a fine that could exceed $2 million. Federal authorities have vowed to pursue individuals who defrauded pandemic relief programs, and Agnello’s case stands as a high-profile example of the consequences.
