David Gentile, former CEO of GPB Capital, was released from prison after President Donald Trump granted him clemency just days into his seven-year sentence for fraud.
Gentile was convicted for orchestrating a Ponzi-like scheme that misled over 10,000 investors and involved about $1.8 billion, falsely portraying the performance of private equity funds. His co-defendant, Jeffry Schneider, received a six-year prison sentence and is set to begin serving it in early 2026.
U.S. attorney Joseph Nocella condemned GPB Capital as “built on a foundation of lies,” revealing investor funds were used to pay returns to earlier investors instead of legitimate profits.
“The sentences imposed today are well deserved and should serve as a warning to would-be fraudsters,” Nocella stated.
The White House under Trump criticised the Biden Department of Justice, arguing investors were informed that fund payouts might come from other investors’ money.
“Even though this was disclosed to investors the Biden Department of Justice claimed this was a Ponzi scheme,” A White House official said.
Trump’s commutation does not erase Gentile’s conviction or other penalties. Throughout 2025, Trump has pardoned or commuted sentences for various white-collar criminals, including Glen Casada, former Tennessee House Speaker, convicted of fraud and money laundering.
Post-conviction, a $46 million settlement was approved against GPB Capital’s auditors for failing to detect the fraud, showing ongoing legal repercussions.
Trump’s use of clemency reflects efforts to reshape federal priorities on financial crime prosecutions, viewed by supporters as correcting excessive punishments, while critics warn of leniency towards serious fraud offenders.