A member of the infamous Gambino crime family has been sentenced for defrauding the U.S. government in a COVID loan scam, Homeland Security Investigations has informed Border Hawk.
Carmine Gotti Agnello, 39, of Smithtown, New York, pleaded guilty to wire fraud in 2024 after he illegally obtained more than $1 million and funneled some of the funds into a cryptocurrency business scheme.
On April 20, Agnello was sentenced to 15 months in prison, two years of supervised release, and 100 hours of community service.
He was also ordered to pay restitution in the amount of $1,268,302 to the Small Business Administration.
“During the height of the COVID-19 pandemic, the defendant shamefully lined his own pockets with government and taxpayers’ dollars which he must repay as part of today’s sentence,” stated United States Attorney Joseph Nocella, Jr.
“Our Office will continue to investigate and bring to justice those criminals who stole funds that were intended to assist legitimate businesses and their employees during a time of crisis.”
Agnello fraudulently applied for, and received, three Economic Injury Disaster Loans totaling $1.1 million, which he submitted on behalf of Crown Auto Parts & Recycling, LLC, a business that he operated out of Jamaica, Queens.
“In an effort to receive loans to which he was not entitled, Agnello submitted false information to the SBA about the number of employees who worked for Crown, as well as about the intended use of the loan proceeds,” the Department of Justice explained in a press release.
“Instead of using the funds for Crown, Agnello diverted them for his personal use, including by investing approximately $420,000 in a cryptocurrency business.”
