Trump pardons former private equity CEO Gentile, just 12 days into his fraud sentence

On Dec. 1, the White House announced that President Donald Trump commuted the prison sentence of David Gentile, former CEO of a private equity firm, just 12 days after he began serving his term. Gentile is among thousands who have received clemency since January.

In May, U.S. District Judge Rachel P. Kovner in Manhattan sentenced Gentile, 59, of Long Island, to seven years in prison for wire and securities fraud. He started serving his sentence on Nov. 14 and was released on Wednesday, according to the Bureau of Prisons website, while Trump was at his Mar-a-Lago estate in Florida. The exact prison facility was not disclosed.

White House pardon coordinator Alice Marie Johnson confirmed Gentiles release in a post on X during Thanksgiving, expressing gratitude to see him reunited with his young children. The Department of Justice has not yet posted the commutation on its website, and it remains unclear whether it includes financial penalties, according to The New York Times.

Gentiles co-defendant, Jeffry Schneider, 57, of Austin, Texas, does not appear to have received a commutation. Schneider, a marketing firm owner, was accused of promoting GPB Capital funds to investors. He was sentenced to six years but does not appear to be in Bureau of Prisons custody.

In June, prosecutors asked the court to order Gentile to forfeit over $15.5 million and Schneider over $12 million. By September, prosecutors stated that the court-appointed receiver had access to more than $700 million.

Gentile was convicted in August 2024 by a jury in the Eastern District of New York of conspiracy to commit securities fraud, conspiracy to commit wire fraud, securities fraud, and two counts of wire fraud. The eight-week trial revealed that he co-founded GPB Capital Holdings in 2013.

During the Biden administration, the U.S. Attorney's Office said Gentile and others defrauded more than 10,000 investors by misrepresenting fund sources for monthly distributions and revenue from three GPB investment funds. U.S. Attorney Joseph Nocella Jr. stated, "The defendants built GPB Capital on a foundation of lies, raising approximately $1.6 billion from investors while misusing capital to create the appearance of success."

According to the DOJ, between 2015 and 2018, Gentile and Schneider misled investors in GPB Funds. The Trump DOJ disputed these charges, noting that investors were informed that some distributions might come from invested capital rather than operations. At trial, the government could not directly link fraudulent statements to Gentile, and concerns were raised about potential false testimony.

Former prosecutors cited statements from over 1,000 ordinary citizens affected by the case, including teachers, veterans, and small business owners. Meanwhile, New York Attorney General Letitia James filed a civil suit against Gentile in 2021, which remains separate from federal criminal matters.

Trump has granted clemency to thousands of individuals, including over 1,500 Jan. 6 defendants, and others convicted of fraud such as Rep. George Santos. In October, Trump pardoned Binance founder Changpeng Zhao, who had served a short prison sentence for a DOJ plea deal involving money laundering.

Author: Sophia Brooks