President Donald Trump commuted the sentence of former investment manager David Gentile, just days after he was sentenced to seven years in prison for fraud.
Jail records show Gentile was released Wednesday, less than two weeks after reporting to jail.
Gentile, the former CEO and founder of GPB Capital, was convicted last year of what federal prosecutors described as a multi-year scheme to defraud more than 10,000 investors by misrepresenting the performance of his private equity funds.
He is the latest in a long line of white-collar criminals whose sentences Trump has commuted.
Gentile was found guilty in August of last year on charges of securities fraud and financial fraud and was sentenced in May. His co-defendant, Jeffry Schneider, was sentenced to six years in prison on the same charges and is scheduled to report to prison in January.
US Attorney Joseph Nocella said at Gentile’s sentencing that GPB Capital was built on a “foundation of lies” and that the company made $1.6 billion (£1.2 billion) using investor capital to pay distributions to other investors.
“The sentences imposed today are well deserved and should serve as a warning to aspiring con artists that trying to get rich by exploiting investors will only get you a one-way ticket to jail,” he said.
But the White House said the Justice Department made a number of mistakes under former President Joe Biden and that investors knew their money could be used to pay dividends for others.
“Even though this was disclosed to investors, the Biden Justice Department maintained that this was a Ponzi scheme,” a White House official said.
“These claims are significantly weakened by the fact that GPB explicitly told investors what was going to happen.”
The official also mentioned Gentile’s concerns that the prosecution had elicited false testimony.
Trump’s commutation of Gentile’s sentence does not absolve him of his crimes like a full presidential pardon would, nor does it eliminate any other potential punishments imposed.
So far in his second term, the president has pardoned or commuted the sentences of several people convicted of various types of fraud, including wire, securities, tax, and health care fraud.
Last month, he pardoned Tennessee House Speaker Glenn Casada, who had been convicted of fraud, money laundering and conspiracy.
Correction December 1, 2025: This article incorrectly stated that Jeffry Schneider “remains behind bars.” Edited to clarify he has not yet been sentenced.
