A Long Island man and grandson of Gambino crime boss John J. Gotti was sentenced Monday to 15 months in prison for fraudulently obtaining about $1.1 million in COVID-19 disaster relief loans, federal prosecutors said.
Carmine G. Agnello, 39, of Smithtown, was sentenced in federal court in Central Islip by U.S. District Judge Nusrat J. Choudhury. In addition to prison time, Agnello was ordered to pay $1,268,302 in restitution to the U.S. Small Business Administration, serve two years of supervised release and complete 100 hours of community service.
Agnello pleaded guilty in September 2024 to wire fraud in connection with the scheme.
According to prosecutors, between April 2020 and November 2021, Agnello applied for and received at least three loans through the COVID-19 Economic Injury Disaster Loan program, totaling approximately $1.1 million. The applications were submitted on behalf of Crown Auto Parts & Recycling, LLC, a Jamaica, Queens business he operated.
Authorities said Agnello provided false information to the Small Business Administration, including misrepresenting the number of employees and how the funds would be used. Instead of supporting the business, prosecutors said he diverted the money for personal use.
That included investing roughly $420,000 into a cryptocurrency venture, according to court records.
Investigators also determined that a significant portion of the funds was obtained after the business was no longer operating, further undermining the legitimacy of the loan applications.
The Economic Injury Disaster Loan program was created under the federal CARES Act to provide low-interest financial assistance to businesses and individuals impacted by the COVID-19 pandemic. Prosecutors said the funds were intended to help businesses survive a period of widespread economic disruption.
Federal officials said the case highlights ongoing efforts to hold individuals accountable for exploiting pandemic relief programs for personal gain.
The case was prosecuted by the Criminal Section of the U.S. Attorney’s Office Long Island Division, with Assistant U.S. Attorney Charles P. Kelly leading the case.
Photo: By FBI New York
