Donald Trump has granted clemency to David Gentile, a private equity executive who had just begun a seven-year prison sentence for his role in a $1.6bn fraud scheme that defrauded thousands of individual investors, according to the New York Times.
Gentile, 59, the founder and former CEO of GPB Capital, was convicted and sentenced in May. He reported to prison on 14 November but was released on 26 November, according to the Federal Bureau of Prisons website.
In a statement on the sentencing in May, US Attorney Joseph Nocella Jr said: “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.”
According to a regulatory complaint, investor funds were used to cover costs including private jets, a $90,000-a-year flight attendant, all-terrain vehicle rentals, and more than $29,000 in expenses for Gentile’s 50th birthday. The complaint also claimed GPB spent $355,000 on a 2015 Ferrari FF used by Gentile.
New York Attorney General Letitia James filed a lawsuit in 2021 against GPB Capital, Gentile, and two other executives, seeking restitution for investors. James said: “Investors put in more than $1.8 billion into GPB funds but were left without a single cent of profit. GPB and its operators fleeced New Yorkers and investors around the country while subsidizing their own lavish lifestyles.”
The New York Times reported that it was unclear whether Gentile had connections to Trump or his supporters. Lawyers for Gentile declined to comment, and Gentile did not respond to a request for comment. As of Sunday, the details of the commutation had not been posted on the Department of Justice website.
