NY Man Jailed for $1.1M COVID Loan Fraud: Immigration News Today
If you have any concerns about past COVID relief loan applications and your immigration status, speak with an immigration lawyer right away — do not wait for a government notice. A fraud conviction, even an old one, may affect your green card application or naturalization process. Many nonprofit legal organizations offer free or low-cost consultations for immigrants.
New York Man Sentenced for Stealing Over $1 Million in COVID Relief Funds
A man from Smithtown, New York was sentenced to 15 months in prison for stealing more than $1.1 million in federal COVID-19 disaster relief loans. The case affects anyone who received or applied for Small Business Administration (SBA) relief funds — and it is a reminder that federal agencies are still prosecuting pandemic-era fraud in 2026.
U.S. District Judge Nusrat J. Choudhury sentenced Carmine Gotti Agnello, 39, to one year and three months in prison. She also ordered him to pay $1,268,302 in restitution — money paid back to the government — to the SBA, and to complete 100 hours of community service. After prison, he must serve two years of supervised release, meaning federal officials will monitor his activities.
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Between April 2020 and November 2021, Agnello applied for and received at least three Economic Injury Disaster Loans (EIDL) — a federal program created to help small businesses survive the COVID-19 pandemic. He submitted the applications on behalf of Crown Auto Parts & Recycling LLC, a business he ran in Jamaica, Queens. Investigators say he gave false information about how many employees worked there and how he planned to use the money. Instead of using the funds for the business, he invested approximately $420,000 in a cryptocurrency business for personal gain.
The investigation was led by Homeland Security Investigations (HSI) New York and the U.S. Postal Inspection Service, working with the U.S. Attorney's Office for the Eastern District of New York. HSI is a federal law enforcement agency that investigates financial crimes, document fraud, and other violations — including cases that may involve immigrants.
What This Means for Immigrants
Federal fraud convictions can have serious consequences for immigrants. A criminal conviction — especially one involving fraud or financial crimes — can affect a green card application, a naturalization process (applying for U.S. citizenship), or lead to removal proceedings (the legal process that can end in deportation). If you or someone you know received COVID relief funds and is unsure whether the application was filed correctly, lawyers recommend speaking with an immigration lawyer as soon as possible.
What to do
- If you received COVID-19 SBA relief loans and are worried about how you used the funds, consult an immigration lawyer before any government contact.
- If you are in removal proceedings or facing a green card application review, tell your immigration lawyer about any past federal loans or business dealings — even if you think they are not related.
- Do not ignore letters or notices from the SBA, HSI, or any federal agency. Lawyers recommend responding through legal counsel, not on your own.
- If you are applying for naturalization (U.S. citizenship) or a green card in 2026, be honest on all forms about past criminal or legal issues — hiding information can make your case much worse.