...
By Khaleda Rahman
National Correspondent
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
President Donald Trump has sparked fresh criticism as he commuted the prison sentence of former investment manager David Gentile just days into his prison sentence after being convicted over his role in a $1.6 billion fraud scheme.
Gentile, the former CEO and co-founder of GPB Capital, had reported to prison on November 14 and was released on Wednesday, according to the Federal Bureau of Prisons.
He was sentenced to seven years in prison in May after an August 2024 conviction for his role in what the Justice Department described as a scheme to defraud more than 10,000 investors by misrepresenting the performance of three private equity funds.
Read More on News
The New York Times, which first reported on the commutation, said it was not clear if Gentile had connections to Trump or his supporters.
Newsweek has contacted the White House for comment via an email sent outside regular business hours.
...
Why It Matters
The commutation, unlike a pardon, will not necessarily eliminate penalties associated with Gentile’s conviction.
But it is the latest instance of Trump’s use of presidential clemency power that has sparked anger. Since returning to office in January, Trump has used clemency power to benefit political allies, donors and supporters, including hundreds of people charged in the connection with the January 6, 2021 Capitol riot.
Some experts and lawmakers have raised concerns that such actions, many of which bypassed the traditional vetting process, risk undermining both the perception and reality of equal justice under the law.
What To Know
According to the U.S. Department of Justice, prosecutors said more than 1,000 people had submitted statements about the impact the losses had on their lives, including veterans, teachers and nurses.
After sentencing in May, Joseph Nocella Jr., the U.S. attorney in the Eastern District of New York, said Gentile and a co-defendant, Jeffry Schneider, had “raised approximately $1.6 billion from individual investors based on false promises of generating investment returns from the profits of portfolio companies, all while using investor capital to pay distributions and create a false appearance of success.”
Nocella said the sentences were "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.”
It does not appear that Schneider, who was sentenced to six years in prison, has received clemency from Trump.
A White House official told The New York Times that prosecutors had falsely characterized the business as a Ponzi scheme. The official said that GPB Capital had disclosed to investors in 2015 that their capital might go to pay dividends to other investors.
The news of the commutation prompted criticism on social media, with some pointing to a double standard in how the Trump administration treats immigrants accused of crimes and wealthy white offenders.
What People Are Saying
Illinois Representative Sean Casten, a Democrat, wrote on X: “Trump will deport an Afghani living in the U.S. with Temporary Protected Status if he is *accused* of stealing $1000. But he’ll set a white dude free who was *convicted* of stealing $1.6B from American citizens to go commit more crime.”
Minnesota Governor Tim Walz, a Democrat, wrote on X: “Just to be clear: There will be no pardons for fraudsters in Minnesota.”
Former Republican congresswoman Barbara Comstock wrote on X: “MAGA Justice: Trump screws the little guy again. Gentile served 7 days in jail. His1000s of defrauded victims included small business owners, farmers, veterans, teachers and nurses. One said, 'I lost my whole life savings. I am living from check to check.’”
Alice Marie Johnson, Trump’s pardon czar, wrote on X that she is “deeply grateful to see David Gentile heading home to his young children.”
She added: “My hope and prayer is that even more families will be reunited before this year comes to a close.”
What Happens Next
As of early Monday, details of Gentile’s commutation have yet to be posted on the Department of Justice website.
It was not immediately clear if the commutation would affect financial penalties. Prosecutors asked the judge in the case to order Gentile to forfeit more than $15.5 million and Scheider to forfeit more than $12 million, according to The Times.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines