Donald Trump just commuted the prison sentence of David Gentile. Gentile, a former investment manager, had previously been sentenced to seven years for defrauding an investor. This order follows on the heels of Gentile beginning to serve his sentence just days earlier. He was handed this sentence in May after his conviction last August. Trump’s action doesn’t absolve Gentile of his crimes, since it goes only partway toward a full presidential pardon.
David Gentile, the founder and chief executive of GPB Capital, was found guilty. In the last case, he was a principal in a fraudulent, multi-year investment scheme that bilked more than 10,000 investors. Federal prosecutors have called the operation a house of fraud “founded on lies.” They charged Gentile with setting out a false picture of how private equity funds are actually performing. GPB Capital allegedly brought in $1.6 billion. They took investor money and used it to pay distributions on other investors, something contained in the very definition of a Ponzi scheme.
Gentile isn’t the only pro to face legal consequences on fraud-related charges. Jeffry Schneider, one of the associates who worked with GPB Capital, was sentenced to six years in prison on similar charges. Trump has already pardoned a number of other people. These individuals were found guilty of a variety of fraudulent acts including wire fraud, securities fraud, tax fraud, and health care fraud.
Just last month, Trump pardoned Glen Casada– the former Tennessee state House Speaker. Casada had recently been convicted on grave convictions for fraud, money laundering and conspiracy counts. Those critics said it is that pattern — more than the practice of commutations and pardons themselves — that has many critics concerned. They claim that these moves lessen the gravity of financial crime.
“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.” – US attorney Joseph Nocella
A White House official commented on the nature of the charges against Gentile, stating, “Even though this was disclosed to investors the Biden Department of Justice claimed this was a Ponzi scheme.”