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Carmine Agnello Gets 15 Months in COVID Loan Fraud Case

The outcome signals a focus on repayment plus mandated treatment rather than a harsher deterrent term.

Overview

  • Agnello, who was sentenced Monday in federal court on Long Island, received a 15-month prison term for wire fraud tied to pandemic relief loans.
  • The judge ordered $1,268,302 in restitution, two years of supervised release, 100 hours of community service, and treatment for gambling and mental health, with self-surrender set for July 20.
  • Prosecutors sought 33 to 41 months and rejected pleas for leniency linked to a planned kidney donation to his mother, which the judge considered but did not accept.
  • Between April 2020 and November 2021, he obtained at least three SBA Economic Injury Disaster Loans for Crown Auto Parts & Recycling using false claims and diverted about $420,000 into a cryptocurrency venture.
  • The case underscores how rapid COVID aid programs like EIDL were vulnerable to fraud, prompting courts to stress recovery of taxpayer funds and compliance after sentencing.