Former investment manager David Gentile, who had recently begun serving a seven-year prison sentence for fraud, has had his sentence commuted by US President Donald Trump.
According to Bureau of Prisons records, Gentile was released Wednesday, having reported to prison less than two weeks prior.
Gentile, previously the chief executive and founder of GPB Capital, was convicted last year for what federal prosecutors characterized as a years-long scheme to defraud over 10,000 investors by misrepresenting the performance of private equity funds.
He joins a growing list of white-collar offenders who have had their sentences commuted by Trump.
Gentile’s conviction in August of last year involved securities and wire fraud charges, with his sentencing occurring in May. Jeffry Schneider, his co-defendant, received a six-year prison sentence on similar charges.
Following Gentile’s sentencing, US Attorney Joseph Nocella stated that GPB Capital was built on a “foundation of lies,” alleging the company generated $1.6 billion (£1.2 billion) while utilizing investor capital to pay distributions to other investors.
“The sentences imposed today are well deserved and should serve as a warning to would-be fraudsters that seeking [sic] to get rich by taking advantage of investors gets you only a one-way ticket to jail,” he said.
However, the White House contends that the Department of Justice under former President Joe Biden committed several errors, asserting that investors were aware their funds could be used for dividends to other individuals.
“Even though this was disclosed to investors the Biden Department of Justice claimed this was a Ponzi scheme,” the White House official stated.
“This claim was profoundly undercut by the fact that GPB had explicitly told investors what would happen.”
The official also noted Gentile’s concerns regarding allegedly false testimony elicited by prosecutors.
Trump’s commutation of Gentile’s sentence, unlike a full presidential pardon, does not exonerate him of his crimes or eliminate other potential penalties.
During his second term, the president has pardoned or commuted the sentences of numerous individuals convicted of various forms of fraud, including wire, securities, tax, and healthcare fraud.
Last month, he pardoned Tennessee state House Speaker Glen Casada, who was convicted of fraud, money laundering, and conspiracy charges.
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