Carmine G. Agnello, grandson of late Gambino crime boss John Gotti, sentenced to prison for COVID loan fraud

A grandson of the late Gambino crime family boss John J. Gotti, who had sought to avoid jail time by donating a kidney to his mother, was sentenced to 15 months in prison Monday for fraudulently applying for and receiving about $1.1 million in COVID-19 loans — a considerably shorter sentence than prosecutors had sought.

Carmine G. Agnello, 40, of Oyster Bay, was also sentenced to 2 years of post-release supervision, during which he must perform 100 hours of community service. He must also submit to a mental health evaluation and counseling, including for his gambling addiction, the judge said.

U.S. District Judge Nusrat J. Choudhury set restitution at $1,268,302 — the amount of the losses plus interest.

Agnello had pleaded guilty to one count of wire fraud in connection with three Small Business Administration loans he fraudulently received during the pandemic.

"Mr. Agnello clearly accepted responsibility for the offense when he pleaded guilty before me," Choudhury said.

The judge said she had considered Angello's offer to donate his kidney to his mother, which she said showed "your love for her."

Agnello addressed Choudhury in her Central Islip courtroom before his sentence was imposed.

“It was wrong, selfish and criminal,” Agnello said. “I carry a great deal of guilt and shame for my actions.”

Agnello must turn himself in to begin his prison sentence on July 20. His lawyer requested the judge recommend to the Bureau of Prisons that he serve his sentence at a prison camp in upstate Otisville.

Agnello's mother, Victoria Gotti, was in court for the sentencing, as well as his two brothers and his uncle John A. "Junior" Gotti.

As the family exited the courthouse Monday, a Newsday reporter asked Victoria Gotti if she was grateful to the judge for the sentence she imposed.

"Very grateful," answered John Gotti Agnello, one of the defendant's brothers.

Victoria replied, "I think she was fair."

Agnello's lawyer, Jeffrey Lichtman, who had successfully represented John A. "Junior" Gotti in his 2005 securities case, said Monday that he was "thrilled" with Agnello's sentence. He predicted that Agnello will be released after four or five months due to various Bureau of Prisons early release programs.

"She gave a just sentence," said Lichtman. "We're thrilled. I expect Carmine will be out of jail about four or five months after he goes in. Look, he's learned his lesson and I don't think he'll be back here again."

Prosecutors have said Agnello received at least three loans on behalf of Crown Auto Parts & Recycling LLC, a Queens-based business he operated. Agnello submitted documentation as part of the loan application process that falsely said he had no criminal record, even though he had pleaded guilty in state court in 2018 to a misdemeanor for running an illegal auto recycling yard in Queens, and he was also convicted of disorderly conduct for possessing a gravity knife in 2009, according to prosecutors.

Agnello didn’t apply the loan proceeds to his business but instead spent them for personal use, which included a $420,000 investment in cryptocurrency, prosecutors have said.

Agnello had argued, through his lawyer, that he should receive probation because he planned to donate a kidney to his mother.

Choudhury had agreed to postpone an earlier scheduled sentencing so that Agnello could donate the kidney to his mother on March 30.

But the surgery didn't happen.

In court Monday, Lichtman requested a sentence of home confinement with probation monitoring as well as mentoring and community service.

Lichtman said his client is a match and plans to donate his kidney to his mother in the near future, an act he said shows a "lack of selfishness."

"He is risking his life," said Lichtman.

The prior scheduled surgery was canceled because "her kidney functioning had increased slightly."

Victoria Gotti's doctor submitted a letter to the judge that said: "I suspect she will probably need a kidney surgery within the next 6 to 12 months."

"Let's be honest," Lichtman said. "This is what a good son does for his mother."

Lichtman also detailed how Agnello's grandfather, father, uncle and a myriad other family members were imprisoned during his childhood.

"There was really no male role model for Carmine," Lichtman said.

Agnello's life was further negatively impacted, said Litchman, by his appearance on the reality TV show "Growing Up Gotti," which he said was "cartoonish" and sought to "exploit the Gotti name."

"I never watched the show," the judge said.

"Likewise," Lichtman replied.

Lichtman then faced his client's guilt head-on, albeit with an explainer.

"He did this," said Lichtman. "There's no question he committed this crime."

Agnello was dealing with a "bad gambling problem," at the time, his lawyer said.

"He tried to erase his losses with the fraud," said Lichtman.

Assistant U.S. Attorney Charles P. Kelly wanted the emphasis off Agnello's family and squarely on the defendant, who he pointed out was in his mid-30s when he committed the fraud.

"This case is not about John Gotti," declared Kelly. "It's about Carmine Agnello. ... At some point, our lives are our own. ... The defendant made those choices."

Kelly had sought for Agnello to be sentenced to 33 to 41 months in prison.

In court papers filed last week, Kelly said Agnello should receive no sentencing consideration connected to the potential organ donation.

Agnello, who wore a plaid blue suit and had his dark hair pulled back into a low bun, declined to comment as he walked to his car after sentencing.

"Have a good day," he said.

His uncle "Junior" Gotti, meanwhile, embraced Lichtman and kissed his lawyer on the cheek.

"I'm heartbroken," Gotti told reporters. "You gotta sit and you got to watch, a kid who you basically changed his diaper, and you gotta watch him go to prison." 

By Nicole Fuller

nicole.fuller@newsday.com@NicoleFuller

Nicole Fuller is Newsday's senior criminal justice reporter. She began working at Newsday in 2012 and previously covered local government.