United States v. Carmine G. Agnello Information (No. 2:24-cr-00366, E.D.N.Y., Doc. 4)

Summary

Information filed 09/26/24 in the U.S. District Court for the Eastern District of New York against Carmine G. Agnello of Smithtown, New York, who operated Crown Auto Parts & Recycling, LLC. It charges that between April 4, 2020 and November 5, 2021 he submitted at least three online applications for Economic Injury Disaster Loans for Crown containing false information about its number of employees, the intended use of the money and his criminal record, omitting a 2018 misdemeanor conviction. The SBA and lenders wire-transferred approximately $1.1 million in EIDL loans for Crown, and Agnello invested approximately $420,000 of the proceeds in a cryptocurrency business. The information charges him with wire fraud.

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Case 2:24-cr-00366-NJC Document 4 Filed 09/26/24 Page 1 of 5 PageID #: 10

FILED
CLERK
MRM:BTK 9/26/2024 3:18 pm
F. #2022R00347
U.S. DISTRICT COURT
UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK
EASTERN DISTRICT OF NEW YORK LONG ISLAND OFFICE
---------------------------X

UNITED STATES OF AMERICA INFORMATION

- against - Cr. No.
(T. 18, U.S.C., §§ 1343, 982(a)(2),
CARMINE G. AGNELLO, 982(b)(1) and 3551 et seq.; T. 21, U.S.C.,
§ 853(p))
Defendant.

---------------------------X

THE UNITED STATES ATTORNEY CHARGES:

INTRODUCTION

At all times relevant to this Information, unless otherwise indicated:

The COVID-19 Pandemic in the United States and the EIDL Program

1. In or about December 2019, a novel coronavirus, SARS-CoV-2, caused

outbreaks of the coronavirus disease COVID-19 that spread globally. On or about January 31,

2020, the Secretary of Health and Human Services declared a national public health emergency

under 42 U.S.C. § 247d as a result of the spread of COVID-19 to and within the United States.

On or about March 11, 2020, the Director-General of the World Health Organization

characterized COVID-19 as a pandemic. On or about March 13, 2020, the President of the

United States issued Proclamation 9994 declaring a national emergency beginning on March 1,

2020, as a result of the rapid spread of COVID-19 within the United States.
Case 2:24-cr-00366-NJC Document 4 Filed 09/26/24 Page 2 of 5 PageID #: 11

2. On or about March 27, 2020, the President signed into law the

Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was a

federal law designed to provide emergency financial assistance to the millions of Americans who

were suffering the economic effects caused by the COVID-19 pandemic.

3. One source of relief provided by the CARES Act was the Economic Injury

Disaster Loan (“EIDL”) program. The EIDL program was overseen by the Small Business

Administration (“SBA”) and was designed to provide long-term, low-interest loans for small

businesses affected by various natural and economic disasters. The CARES Act provided

funding for EIDLs for businesses affected by the COVID-19 pandemic. EIDL loan amounts

were determined based on the recipient businesses’ historical revenue and disbursed directly by

the SBA.

The Defendant and His Fraud Scheme

4. The defendant CARMINE G. AGNELLO was a resident of Smithtown,

New York. AGNELLO operated Crown Auto Parts & Recycling, LLC (“Crown”), through

which he committed the fraud described herein.

5. On or about and between April 4, 2020 and November 5, 2021, both dates

being approximate and inclusive, the defendant CARMINE G. AGNELLO engaged in a scheme

to defraud the SBA and several financial institutions administering the EIDL program of federal

COVID-19 emergency-relief funds meant for distressed small businesses. It was a part of the

scheme to defraud that AGNELLO submitted or caused to be submitted at least three online loan

applications to obtain funds through the EIDL program for Crown. It was further a part of the

scheme to defraud that these loan applications and certain supporting documentation contained

materially false and fraudulent information including, but not limited to, Crown’s number of
Case 2:24-cr-00366-NJC Document 4 Filed 09/26/24 Page 3 of 5 PageID #: 12

employees, the intended use of the applied-for loan proceeds, and the statement that AGNELLO

did not have a criminal record when, in fact, in 2018, AGNELLO was convicted of a

misdemeanor offense in a New York State Court, all of which was specifically designed to

mislead the SBA and financial institutions administering the EIDL program into disbursing

various loans, which it did.

6. In total, between approximately April 4, 2020 and November 5, 2021, as a

result of this fraudulent scheme, the SBA and financial institutions administering the EIDL

program wire-transferred sums totaling approximately $1.1 million in EIDL loans for Crown to

bank accounts that the defendant CARMINE G. AGNELLO established at bank branches in the

Eastern District of New York and elsewhere.

7. Shortly after receiving these loan proceeds, the defendant CARMINE G.

AGNELLO utilized the proceeds to enrich himself, including by investing approximately

$420,000 in a cryptocurrency business.

WIRE FRAUD

8. The allegations contained in paragraphs one through seven are realleged

and incorporated as if fully set forth in this paragraph.

9. On or about and between April 4, 2020 and November 5, 2021, both dates

being approximate and inclusive, within the Eastern District of New York and elsewhere, the

defendant CARMINE G. AGNELLO did knowingly and intentionally devise a scheme and

artifice to defraud the SBA and one or more financial institutions administering the EIDL

program, and to obtain money and property from the SBA and said financial institutions by

means of materially false and fraudulent pretenses, representations and promises, and for the

purpose of executing such scheme and artifice, to transmit and cause to be transmitted by means
Case 2:24-cr-00366-NJC Document 4 Filed 09/26/24 Page 4 of 5 PageID #: 13

of wire communication in interstate and foreign commerce, one or more writings, signs, signals,

pictures and sounds, to wit: fraudulent online applications for one or more EIDL loans for

Crown.

(Title 18, United States Code, Sections 1343 and 3551 et seq.)

CRIMINAL FORFEITURE ALLEGATION

10. The United States hereby gives notice to the defendant that, upon his

conviction of the offense charged herein, the government will seek forfeiture in accordance with

Title 18, United States Code, Section 981(a)(1)(C) and Title 28, United States Code, Section

2461(c), which require any person convicted of such offense to forfeit any property, real or

personal, constituting, or derived from, proceeds obtained directly or indirectly as a result of

such offense.

11. If any of the above-described forfeitable property, as a result of any act or

omission of the defendant:

(a) cannot be located upon the exercise of due diligence;

(b) has been transferred or sold to, or deposited with, a third party;

(d) has been substantially diminished in value; or

(e) has been commingled with other property which cannot be divided

without difficulty;
Case 2:24-cr-00366-NJC Document 4 Filed 09/26/24 Page 5 of 5 PageID #: 14

it is the intent of the United States, pursuant to Title 21, United States Code, Section 853(p), as

incorporated by 18 U.S.C. § 982(b)(l), to seek forfeiture of any other property of the defendant

up to the value of the forfeitable property described in this forfeiture allegation.

(Title 18, United States Code, Sections 982(a)(2) and 982(b)(l); Title 21 , United

States Code, Section 853(p))

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BREON PEACE
UNITED STATES ATTORNEY
EASTERN DISTRICT OF NEW YORK

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