41°
Long Island resident Carmine Agnello, age 38, of Smithtown, pleaded guilty to wire fraud in Central Islip federal court on Thursday, Sept. 26.
Agnello is the grandson of the late John Gotti, former boss of the Gambino organized crime family.
According to prosecutors, between April 2020 and November 2021, he fraudulently applied for, and received, at least three small business loans under the US Small Business Administration’s Economic Injury Disaster Loan Program (EIDLP).
The program was created by Congress in March 2020 to provide emergency financial assistance to businesses impacted by the COVID-19 pandemic.
Altogether, Agnello received loans totaling approximately $1.1 million for his Jamaica, Queens-based business, Crown Auto Parts & Recycling.
As part of the scheme, prosecutors said he submitted documentation to the Small Business Administration falsely claiming he had no criminal record. In fact, he had a misdemeanor conviction from 2018.
Agnello also lied about the number of employees at Crown and the intended use of the loan proceeds. An investigation found that he spent the money on personal use, including investing nearly $420,000 in a cryptocurrency business.
“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,” said US Attorney Breon Peace.
“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 was released on a $500,000 bond ahead of his sentencing.
He faces up to 30 years in federal prison, plus restitution totaling more than $430,000 and a fine of up to $2.2 million.
Click here to follow Daily Voice Norwich and receive free news updates.
