Carmine G. Agnello was sentenced on Apr. 20 in federal court in Central Islip to 15 months in prison for defrauding the United States Small Business Administration of about $1.1 million through the COVID-19 Economic Injury Disaster Loan program. Judge Nusrat J. Choudhury also ordered Agnello to pay $1,268,302 in restitution, serve two years of supervised release, and complete 100 hours of community service.
The case highlights efforts by authorities to address fraud related to pandemic relief programs designed to support businesses and employees during a national crisis.
United States Attorney Joseph Nocella, Jr., for the Eastern District of New York, said, “During the height of the COVID-19 pandemic, the defendant shamefully lined his own pockets with government and taxpayers’ dollars which he must repay as part of today’s sentence. Our Office will continue to investigate and bring to justice those criminals who stole funds that were intended to assist legitimate businesses and their employees during a time of crisis.”
Inspector in Charge Ketty Larco-Ward from the United States Postal Inspection Service added, “Mr. Agnello defrauded a program designed to assist businesses and employees during the pandemic. This investigation showcases the results that postal inspectors strive to achieve in collaboration with our law enforcement partners and the U.S. Attorney’s Office of the Eastern District of New York.”
According to court records presented at Agnello’s plea and sentencing hearings, between April 2020 and November 2021 he submitted false information about employee numbers and use of funds when applying for three loans on behalf of Crown Auto Parts & Recycling LLC based in Jamaica, Queens. He then diverted much of these funds—about $420,000—to invest personally in a cryptocurrency business instead.
The U.S. Attorney for the Eastern District of New York operates as the designated federal prosecutor's office for Brooklyn, Queens, Staten Island, Nassau County, and Suffolk County according to its official website. The office handles federal crime prosecutions as well as civil matters representation according to its official website.
Breon Peace is currently listed as United States Attorney leading this office as noted on its official website. The district maintains offices both in Brooklyn and Central Islip per its official website, supports community outreach initiatives including victim assistance efforts according to its official website.
Assistant United States Attorney Charles P. Kelly prosecuted this case with support from Paralegal Specialist Samantha Schroder.
