Carmine G. Agnello Jr., the grandson of late Gambino crime family boss John J. Gotti, was sentenced to 15 months in federal prison on April 20, 2026, for defrauding the U.S. Small Business Administration (SBA) of approximately $1.1 million in COVID-19 pandemic relief loans. U.S. District Judge Nusrat J. Choudhury also ordered Agnello to pay $1,268,302 in restitution, serve two years of supervised release, and complete 100 hours of community service. The sentence fell below federal guidelines, which recommended a range of roughly 31 to 44 months.
Fraud Details: False Employee Counts and Misused Funds
Agnello, 39, of Smithtown, New York, operated Crown Auto Parts and Recycling, LLC in Jamaica, Queens. Between April 2020 and November 2021, he submitted at least three fraudulent applications for Economic Injury Disaster Loans through the SBA's CARES Act program. He received the full $1.1 million. To obtain the funds, Agnello misrepresented the number of employees at Crown, falsely described how the loan proceeds would be used, and claimed he had no criminal record despite a 2018 New York State misdemeanor conviction. Instead of using the funds for payroll, rent, or operating expenses, Agnello diverted the proceeds for personal benefit.
$420,000 Directed into Cryptocurrency Business
According to court documents, approximately $420,000 of the fraudulent loan funds were invested into a cryptocurrency business. Agnello's defense counsel stated in a pre-sentencing memorandum that the cryptocurrency expenditures amounted to 'a form of gambling driven by an addiction to cryptocurrency trading,' a pattern Agnello has since addressed through treatment. The specific crypto firm is not publicly named in official documents.
Notable Background and Guilty Plea
Agnello gained public recognition as a reality TV personality from the mid-2000s A&E series 'Growing Up Gotti,' which followed the family of his grandfather, John Gotti — the notorious 'Teflon Don' who led the Gambino crime family. John Gotti was convicted in 1992 on racketeering and murder charges and died in prison in 2002. Agnello pleaded guilty on September 26, 2024, to one count of wire fraud, which carried a maximum sentence of 30 years. His defense noted personal circumstances, including his role as a kidney donor to his mother, Victoria Gotti.
Prosecutor Condemns Abuse of Pandemic Aid
U.S. Attorney Joseph Nocella Jr. stated that the defendant 'shamefully lined his own pockets with government and taxpayers’ dollars' intended to support legitimate businesses during the pandemic. He emphasized that his office will continue prosecuting COVID-19 relief fraud cases. The scheme was investigated by the U.S. Postal Inspection Service with assistance from Homeland Security Investigations. After court, Agnello told NBC New York reporters, 'It’s alright, it could be worse.'