The grandson of the late Gambino boss Gotti, involved in a $1.1 million fraud case, was sentenced to 15 months in federal prison

Carmine G. Agnello II (the grandson of the late Gambino crime family boss John J. Gotti) was sentenced on April 20, 2026, by a U.S. federal district court to 15 months in federal prison for defrauding the U.S. Small Business Administration (SBA) and stealing approximately $1.1 million in COVID-19 EIDL emergency loans.

Sentencing Details and Plea Circumstances

According to court records, Agnello pleaded guilty before Judge Joduri on September 26, 2024, to a charge of wire fraud. The wire fraud charge carries a maximum penalty of 30 years in prison. The 15-month sentence is below the range of 31 to 44 months recommended by the federal sentencing guidelines.

At the sentencing hearing, defense counsel described Agnello’s personal circumstances, including that he donated a kidney to his mother, Victoria Gotti. According to a CBS News report, in a sentencing memorandum the defense attorney said the relevant cryptocurrency spending was “a form of gambling driven by cryptocurrency trading addiction,” and that Agnello had addressed the issue through treatment. After the trial, Agnello told NBC New York: “It’s all right. Things could have been worse.”

Details of the Fraud: False Applications and Misappropriation of Funds

According to court documents, Agnello operated a “Crown Auto Parts and Recycling LLC” located in Queens, New York. Between April 2020 and November 2021, he submitted at least three false applications through the SBA’s CARES Act (CARES Act) EIDL program, ultimately receiving a full $1.1 million loan. Agnello misrepresented the number of employees at his company, lied about the intended use of the loan, and claimed he had no criminal record, but in reality he had an existing 2018 New York State misdemeanor conviction record.

Court documents show that Agnello did not use the loan for payroll, rent, or operating expenses. Instead, he put approximately $420k into a cryptocurrency business (the business name was not disclosed in any official court document), and used the remaining funds for personal purposes.

Statements From U.S. Prosecutors and Investigative Agencies

According to an announcement from the U.S. District Court for the Eastern District of the United States, U.S. Attorney Joseph Nocera Jr. said the defendant “shamelessly lined his own pockets with government and taxpayer funds meant to support legitimate businesses and workers during the pandemic,” and added that his office will continue to pursue individuals who stole funds from the relief program. Katie Racko-Ward, the head of the U.S. Postal Inspection Service (USPIS), said this case demonstrates the results of Postal Inspectors working hand in hand with law enforcement partners. The case was investigated by USPIS and assisted by the Homeland Security Investigations (HSI).

Frequently Asked Questions

What offense was Carmine Agnello convicted of that led to a 15-month federal prison sentence?

According to court records, Carmine G. Agnello II pleaded guilty on September 26, 2024, to a wire fraud charge. The crime involved obtaining approximately $1.1 million in COVID-19 emergency loans under the SBA EIDL program through at least three false applications; on April 20, 2026, he was sentenced to 15 months in federal prison.

How did Agnello use the SBA loan obtained through fraud?

According to court documents, Agnello did not use the loan for the required payroll, rent, or operating expenses. Instead, he invested approximately $420k into a cryptocurrency business (the name was not disclosed in official documents), and used the remaining funds for personal purposes.

What was the full punishment imposed in this sentencing?

Per the April 20, 2026 judgment, Agnello must serve 15 months in federal prison, pay $1,268,302 in restitution to the SBA, undergo two years of supervised release after release from prison, and complete 100 hours of community service.