Carmine G. Agnello, John Gotti's Grandson, Pleads Guilty to $1.1M COVID-19 Fraud

Carmine G. Agnello, grandson of mob boss John Gotti, pleaded guilty to $1.1 million COVID-19 loan fraud, diverting funds for personal use.Photo byNypost.com

Carmine G. Agnello, grandson of the late mob boss John Gotti, pleaded guilty to wire fraud in federal court on Thursday, according to the U.S. Attorney’s Office for the Eastern District of New York.

Agnello, 38, admitted to fraudulently obtaining approximately $1.1 million in small business loans through the U.S. Small Business Administration’s Economic Injury Disaster Loan Program (EIDLP), which was created to help businesses affected by the COVID-19 pandemic.

Agnello’s guilty plea was entered before U.S. District Judge Nusrat Choudhury. The Smithtown resident now faces up to 30 years in prison, restitution of more than $940,000, and a fine of up to $2.2 million at his upcoming sentencing.

Prosecutors said Agnello, who ran Crown Auto Parts & Recycling, LLC, in Queens, submitted false information about the number of employees and the intended use of the loan proceeds.

Rather than using the funds for legitimate business purposes, Agnello diverted over $420,000 of the loan for personal gain, including investing in a cryptocurrency business, court records show.

“The defendant shamefully used the public health and economic crisis of the COVID-19 pandemic as an opportunity to line his pockets with stolen funds,” stated Breon Peace, U.S. Attorney for the Eastern District of New York.

“The reality is, those who engaged in blatant theft of taxpayer dollars intended to assist legitimate businesses and their employees during the COVID-19 pandemic should know that despite the passage of time, there is no free pass for their crimes and they will be vigorously prosecuted by the Office.”

Agnello gained public attention in the early 2000s when he appeared with his mother, Victoria Gotti, and his brothers on the A&E reality TV series Growing Up Gotti.

The show, which aired from 2004 to 2005, followed the Gotti family’s life and later featured a 10-year reunion special in 2014.

Agnello's sentencing marks a significant development in ongoing efforts to prosecute those who defrauded COVID-19 relief programs designed to support struggling businesses, according to the DOJ.