US President Donald Trump has commuted the sentence of David Gentile, a former investment manager recently sentenced to seven years in prison for fraud. Records from the Bureau of Prisons indicate that Gentile was released on Wednesday, less than two weeks after he began serving his sentence.
Gentile, who served as the chief executive and founder of GPB Capital, was convicted in August of last year on charges of securities and wire fraud. Federal prosecutors characterized the case as part of a multi-year scheme that misled over 10,000 investors regarding the performance of private equity funds. In May, he received his sentence, while his co-defendant, Jeffry Schneider, is currently serving a six-year sentence for similar charges.
US attorney Joseph Nocella stated at Gentile’s sentencing that GPB Capital operated on a “foundation of lies,” claiming the company generated $1.6 billion while misusing investor funds to pay returns to other investors. He asserted that the sentences would serve as a deterrent to potential fraudsters.
The White House has since suggested that the Department of Justice, under former President Joe Biden, made several errors in their prosecution. An official claimed that investors were informed their capital could be used for paying dividends to other investors and disputed the characterization of the operation as a Ponzi scheme. The official also pointed to concerns from Gentile regarding possible false testimony given by prosecutors.
Trump’s commutation of Gentile’s sentence does not equate to a presidential pardon, which would fully absolve him from his crimes, nor does it eliminate other potential penalties. In his current term, Trump has commuted or pardoned several individuals convicted of various types of fraud, including a recent pardon for Tennessee state House Speaker Glen Casada, who faced charges related to fraud, money laundering, and conspiracy.
Source: https://www.bbc.com/news/articles/c7vmn61l75ro?at_medium=RSS&at_campaign=rss