Gotti Grandson Is Sentenced to 15 Months for Covid Relief Fraud

The grandson of an infamous mob boss was sentenced to prison on Monday after pleading guilty to defrauding the federal government out of more than $1 million in Covid relief funds, some of which he invested in cryptocurrency.

Carmine G. Agnello Jr., the grandson of John J. Gotti, the former leader of the Gambino crime family, was sentenced to 15 months in prison by Judge Nusrat J. Choudhury in Federal District Court in Central Islip, N.Y. She also ordered Mr. Agnello to pay $1.3 million in restitution to the Small Business Administration.

Mr. Agnello, 39, fidgeted in court on Monday. Some of his family members were in attendance, including mob figures previously convicted of federal crimes: his father Carmine (the Bull) Agnello and his uncle John A. Gotti.

Wearing a gray, checkered suit, Mr. Agnello read a brief statement in court calling his crime “wrong, selfish and criminal.” He added that he never wanted to “find myself in prison” like so many of his relatives.

“I regret not only what I did, but the disappointment I caused my family,” he said.

Starting in April 2020, Mr. Agnello applied for at least three loans for his Queens-based company, Crown Auto Parts & Recycling L.L.C., through a program meant to support small businesses hurt by the pandemic.

He applied for the loans under false pretenses, claiming he did not have a criminal record when he in fact did have one, prosecutors said. He then used more than $400,000 of the borrowed money to invest in a crypto business.

Mr. Agnello pleaded guilty in September 2024 to a single count of wire fraud. Federal prosecutors with the Eastern District of New York had sought a sentence of around three years, as well as $1.3 million in restitution.

He “shamefully lined his own pockets with government and taxpayers’ dollars,” Joseph Nocella Jr., the U.S. attorney for the Eastern District of New York, said in a statement.

As a child, Mr. Agnello starred on the reality television show “Growing Up Gotti” alongside his mother, Victoria Gotti, and two brothers, Frank and John. The show, which ran on A&E for three seasons and was canceled in 2005, depicted a Long Island household in the milieu of “The Sopranos.”

At the time, Mr. Agnello’s father was in prison and had been divorced from Ms. Gotti, a former columnist for The New York Post, leaving her to raise three rowdy sons. The intense media focus on the Gottis gave the grandson “a distorted sense of reality,” wrote John A. Gotti, Mr. Agnello’s uncle and the leader of the crime family in the 1990s, in a letter to Judge Choudhury before the sentencing.

“Being part of the Gotti family meant growing up with too much attention, expectations and society’s judgment that most kids never have to deal with,” Mr. Gotti wrote. He added that his nephew faced pressure “to live up to the Gotti name.”

Mr. Agnello found his way into the family business, in a way. In 2018, he pleaded guilty to running an unregistered scrap business. That case echoed his father’s racketeering conviction after he firebombed a rival scrap company in Queens that was run by undercover police officers.

Mr. Agnello’s grandfather exercised power with unrelenting brutality and delighted in the spotlight. He seized control of the family by organizing the 1985 assassination of his predecessor, Paul Castellano, before running enterprises that investigators estimated earned about $500 million a year from ventures that included extorting unions, illegal gambling, loan-sharking and stock fraud.

After numerous acquittals in state and federal trials, aided by juries that had been tampered with, Mr. Gotti earned the nickname “Teflon Don” from New York City’s tabloids. He was ultimately convicted in 1992 on 13 criminal counts and died of cancer in 2002 at age 61 in a federal prison hospital.

Jeffrey Lichtman, a lawyer for Mr. Agnello, told Judge Choudhury that Mr. Agnello had grown up with no male role models in his life, as 15 of his family members had gone to prison, including his grandfather when he was 5 and his father when he was 14.

Mr. Lichtman, who also represented Mr. Agnello’s uncle, called his client’s crime “horrific behavior” but added that his conduct was inevitable.

Charles P. Kelly, a federal prosecutor, said in court on Monday that Mr. Agnello’s family history was no excuse for his fraud.

“This case is not about John Gotti; it’s about Carmine Agnello,” Mr. Kelly said.

This year, Steven Metcalf, another lawyer for Mr. Agnello, asked Judge Choudhury for a sentence with no prison time so that Mr. Agnello could donate a kidney to his mother, who has renal disease and also appeared in court on Monday. Without the transplant, Ms. Gotti could die during her son’s prison term, Mr. Metcalf said.

But in April, Mr. Agnello hired Mr. Lichtman, who apologized to the judge for Mr. Metcalf’s “voluminous argument” in support of Mr. Agnello, which stretched hundreds of pages.

As Judge Choudhury announced the sentence, Mr. Agnello kept his gaze forward and nodded. Judge Choudhury pushed back on the notion that his upbringing drove him to commit wire fraud.

“You were raised with access to opportunities. These are opportunities that many people in our society do not have,” she said.

After the sentence on Monday, Mr. Agnello embraced his family members in a hallway of the courthouse, one by one, kissing his uncle and his father on the cheek. He must surrender to the authorities to begin serving his prison term by July 20.

Outside the courthouse, his uncle John A. Gotti addressed a group of reporters.

“We had 15 members of our family who went to prison,” he said. “I think that’s enough. I think we did our time.”