American gangster boss John Gotti's grandson sentenced for cryptocurrency-related fraud

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On April 22, the U.S. Department of Justice disclosed that Carmine Agnello, the grandson of mob boss John Gotti, was sentenced to 15 months in prison for defrauding approximately $1.1 million in COVID relief funds and investing part of the funds in cryptocurrency businesses.
Prosecutors said that between April 2020 and November 2021, Agnello obtained multiple relief loans from the U.S. Small Business Administration (SBA) through false declarations, claiming the money would be used to operate his auto parts and recycling business, but in reality he diverted the funds for personal use, with about $420,000 invested in crypto-related investments. The U.S. Attorney’s Office for the Eastern District of New York said the conduct occurred during the height of the pandemic and constituted a serious misuse of government assistance funds. Agnello is expected to enter prison on July 1 to serve his sentence.
In addition, official data shows that COVID relief funds fraud is a serious problem in the U.S.; the U.S. Government Accountability Office (GAO) estimates that about $135 billion (about 15% of the total) of the funds flowed into scam activities.

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