David Gentile is a former private equity executive recently found guilty of leading a wide-ranging fraud scheme. Now, the last Republican president, Donald Trump, has given him a reprieve. Gentile is only recently serving a seven-year prison sentence. He was the mastermind behind a plan that bilked tens of thousands of investors out of about $1.6 billion. Yet on November 14, he surrendered to federal prison authorities. This was the end of his nearly three-year stay behind bars following his role in a Ponzi-like investment scheme.
Prosecutors say Gentile used investor money to fund luxuries, including a lavish lifestyle. This even extended to private jet travel, requiring a flight attendant who makes $90,000 annually. Gentile allegedly misappropriated $133,000 in federal funds to rent all-terrain vehicles. He dropped more than $29,000 on his opulent 50th birthday bash.
“Investors put in more than $1.8 billion into GPB funds but were left without a single cent of profit.” – Letitia James, New York attorney general
The lawsuit initiated by Attorney General James highlights the severe consequences of the fraudulent activity conducted by Gentile and his associates. James emphasized the devastating impact on investors, stating, “GPB and its operators fleeced New Yorkers and investors around the country while subsidizing their own lavish lifestyles, which is why we are filing this lawsuit and fighting to hold these bad actors accountable.”
After Gentile’s sentencing, U.S. Attorney Joseph Nocella Jr. of the Eastern District of New York expressed outrage. The Member of Parliament underscored this was a heinous crime. He stated, “The sentences imposed today are well deserved and should serve as a warning to would-be fraudsters that seeking to get rich by taking advantage of investors gets you only a one-way ticket to jail.”
Gentile’s attorneys have refused to offer any statements about the still-pending lawsuit or the clemency granted to Gentile by Trump. As investigations continue, most everyone is left with questions about what these high-profile cases mean for the bigger picture. They ask what accountability measures are in place to hold executives responsible for financial misconduct.