HALLANDALE BEACH, Fla. – In a notable move, President Donald Trump has commuted the prison sentence of David Gentile, a former investment manager found guilty of defrauding investors. This decision adds to Trump’s pattern of granting clemency in white-collar crime cases.

Gentile, who had just begun serving his prison term on November 14, received the presidential commutation shortly thereafter, a White House official revealed under the condition of anonymity. As the CEO and co-founder of GPB Capital, Gentile was instrumental in raising $1.6 billion to invest in companies spanning the automotive, retail, healthcare, and housing industries.

In August 2024, Gentile was sentenced to seven years in prison for orchestrating a scheme that defrauded over 10,000 investors. The Justice Department accused him of misrepresenting the performance of three private equity funds.

However, according to the White House, GPB Capital had informed investors back in 2015 that their investments might be used to pay dividends to other investors. This, the White House argued, casts doubt on the allegations of operating a “Ponzi” scheme, where funds from new investors are used to pay returns to earlier investors.

While the criminal proceedings concluded with no restitution ordered, various civil lawsuits are currently addressing compensations and damages owed to the affected investors.