Covid-19: Smithtown grandson of ex-mob boss admits to $1 million relief fraud

Long Island resident Carmine Agnello, age 38, of Smithtown, pleaded guilty to wire fraud in Islip Central District Court on Thursday, September 26.

Agnello is the grandson of the late John Gotti, former boss of the Gambino organized crime family.

Prosecutors say he fraudulently applied for and received at least three small business loans under the U.S. Small Business Administration’s Economic Injury Disaster Loan Program (EIDLP) between April 2020 and November 2021.

The program was created by Congress in March 2020 to provide emergency financial assistance to businesses affected by the COVID-19 pandemic.

In total, Agnello received loans totaling approximately $1.1 million for his Jamaica, Queens-based company, Crown Auto Parts & Recycling.

As part of the scheme, prosecutors said he submitted documentation to the Small Business Administration, falsely claiming he had no criminal record. He even had a felony conviction from 2018.

Agnello also lied about the number of employees at Crown and the intended use of loan proceeds. Investigations revealed he spent the money on personal use, including investing nearly $420,000 in a cryptocurrency company.

“The defendant shamefully used the public health and economic crisis of the COVID-19 pandemic as an opportunity to line his pockets with stolen money,” said U.S. Attorney Breon Peace.

“The reality is that those guilty of blatant theft of taxpayer dollars intended to help legitimate businesses and their employees during the COVID-19 pandemic should know that despite the passage of time, there is no carte blanche for their crimes , and that they will do so.” vigorously prosecuted by the office.”

Agnello was released on $500,000 bond prior to his sentencing.

He faces up to 30 years in prison, plus restitution totaling more than $430,000 and a fine of up to $2.2 million.

Click here to follow Daily Voice Smithtown and receive free news updates.