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Mob Boss’ Grandson Used Stolen U.S. Covid-19 Relief Funds for Crypto Investments

The DOJ said Carmine Agnello’s SBA loan fraud ran from April 2020 to November 2021, with his prison reporting date set for July 1.

Fact Check
The claim is strongly supported. The CoinDesk article 'Mob boss John Gotti’s grandson is headed to prison for a $1.1 million Covid fraud and crypto scheme' gives all key elements: Carmine Agnello’s SBA-related fraud ran from April 2020 to November 2021, some funds were used for crypto investments, and his surrender date is July 1. This reporting is tied to DOJ material. Independent corroboration comes from justice.gov search results showing both the earlier guilty plea release 'Smithtown Man Pleads Guilty to $1 Million Covid-19 Fraud' and a later April 20, 2026 sentencing release on the Eastern District of New York newsroom page. No conflicting evidence appears in the gathered sources.
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Summary

Carmine Agnello was sentenced to 15 months in prison for fraudulently obtaining about $1.1 million in U.S. COVID relief funds, according to the DOJ. The fraud ran from April 2020 to November 2021 through false Small Business Administration loan applications. Authorities said about $420,000 of the funds was diverted into crypto-related investments, and Agnello is expected to report to prison on July 1.

Terms & Concepts
  • Crypto-related investments: Investments connected to digital assets or cryptocurrency businesses, which may include tokens, trading activities, or blockchain-related ventures.