Smithtown Man Pleads Guilty to $1 Million Covid-19 Fraud
Summary
A press release of the U.S. Attorney's Office for the Eastern District of New York dated Thursday, September 26, 2024, announcing that Carmine G. Agnello, of Smithtown, pleaded guilty in Central Islip to wire fraud in connection with approximately $1.1 million in loans under the Small Business Administration's Economic Injury Disaster Loan Program. It states that the proceeding took place before United States District Judge Nusrat J. Choudhury and that, when sentenced, he faces up to 30 years in prison, restitution totaling more than $940,000 and a fine of up to $2.2 million. The release's subtitle states that he used the loan proceeds to invest in cryptocurrency. The plea was announced by United States Attorney Breon Peace and Inspector in Charge Daniel Brubaker of the U.S. Postal Inspection Service.
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Press Release Smithtown Man Pleads Guilty to $1 Million Covid-19 Fraud Thursday, September 26, 2024 For Immediate Release U.S. Attorney's Office, Eastern District of New York Defendant Fraudulently Obtained Disaster Relief Loans and Used Proceeds to Invest in Cryptocurrency Earlier today, at the federal courthouse in Central Islip, Carmine G. Agnello pleaded guilty to wire fraud in connection with his receipt of approximately $1.1 million in small business loans under the United States Small Business Administration’s Economic Injury Disaster Loan Program (EIDLP). Today’s proceeding was held before United States District Judge Nusrat J. Choudhury. When sentenced, Agnello faces up to 30 years in prison, as well as restitution totaling more than $940,000 and a fine of up to $2.2 million. Breon Peace, United States Attorney for the Eastern District of New York, and Daniel Brubaker, Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty plea. “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,” stated United States Attorney 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 allegedly used over $1 Million in COVID relief funds for his own financial gain. Government money that was intended to assist struggling businesses during the COVID-19 pandemic. Postal Inspectors will relentlessly pursue any individuals who scheme to defraud the government and steal taxpayer funds. We, along with our law enforcements partners, will not end this pursuit of justice until those who take advantage of the U.S. Mail to commit fraud are held fully accountable. Today’s guilty plea is proof of that fact. I would like to thank our partners in Homeland Security Investigations and the United States Attorney's Office, Eastern District of New York, for their work on this investigation,” stated USPIS Inspector in Charge Brubaker. Congress created the EIDLP as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Enacted on March 29, 2020, the CARES Act provided emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the EIDLP, which provided low-interest financing to small businesses, renters and homeowners in regions affected by declared disasters. As set forth in court filings, between April 2020 and November 2021, amid the COVID-19 pandemic, Agnello fraudulently applied for, and received, at least three EIDLP loans totaling approximately $1.1 million that he submitted on behalf of Crown Auto Parts & Recycling, LLC (Crown), a Jamaica, Queens-based business that he operated. As part of the scheme, Agnello submitted documentation to the Small Business Administration and financial institution responsible for disbursing the funds, that falsely claimed he had no criminal record when, in reality, he had a 2018 misdemeanor conviction. Agnello also submitted false information about the number of employees that worked for Crown and the intended use of the loan proceeds. Instead of using the funds for disaster relief, Agnello diverted them for his personal use, including by investing approximately $420,000 in a cryptocurrency business. The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorney Bradley T. King is in charge of the prosecution. The Defendant : CARMINE G. AGNELLO Age: 38 Smithtown, New York E.D.N.Y. Docket No. 24-CR-366 (NJC) Contact John Marzulli Danielle Blustein Hass United States Attorney’s Office (718) 254-6323 Updated September 26, 2024 Topics Coronavirus Financial Fraud Component USAO - New York, Eastern Related Content Press Release Long Island Businessman Pleads Guilty in Bank Fraud Conspiracy “Rather than take lawful steps to wind down his failing businesses, John Mensch resorted to criminality, operating a scheme to defraud two banks into advancing him millions of dollars that... October 2, 2024 Press Release Four Employees of Juvenile Detention Center Plead Guilty to Taking Bribes “These defendants prioritized their own financial interests above the safety and security of residents and co-workers at the Crossroads Juvenile Center, giving dangerous contraband to juveniles in their care in... October 1, 2024 Press Release Senior Fund Executives and Salespeople Charged in Connection with $60 Million Pre-IPO Fraud Scheme “As alleged, based on false promises the defendants bilked investors out of millions of dollars,” stated United States Attorney Breon Peace. “They lied about how they made money and promised... September 12, 2024
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