Trump releases fraudster executive who spent days in jail

US President Donald Trump commuted the sentence of former investment manager David Gentile, who was just days away from a seven-year prison sentence for fraud.

Bureau of Prisons records show Gentile was released Wednesday, less than two weeks after he reported to prison.

Gentile, the former CEO and founder of GPB Capital, was convicted last year of what federal prosecutors described as a multi-year scheme to defraud more than 10,000 investors by misrepresenting the performance of private equity funds.

He is the latest in a string of white-collar criminals whose sentences Trump has commuted.

Gentile was convicted of securities and wire fraud last August and was sentenced in May.

His co-defendant, Jeffry Schneider, was sentenced to six years in prison on the same charge. He remains behind bars.

US lawyer Joseph Nocella said at Gentile’s sentencing that GPB Capital was built on “a foundation of lies” and the company made $1.6bn (£1.2bn) while using investor capital to distribute to other investors.

He said: “Today’s sentence is well deserved and should serve as a warning to would-be fraudsters that enriching yourself by taking advantage of investors will only get you a one-way ticket to jail.”

But the White House said the Justice Department under former President Joe Biden made multiple missteps and investors realized their money could be going to someone else’s dividends.

“Even though the matter was disclosed to investors, the Biden Justice Department continues to claim it was a Ponzi scheme,” the White House official said.

“That claim is seriously undermined by the fact that GPB has told investors clearly what will happen.”

The official also cited Gentile’s concerns that prosecutors elicited false testimony.

Trump’s commutation of Gentile’s sentence does not clear his guilt the way a full presidential pardon would, nor does it eliminate other penalties that might be imposed.

So far in his second term, the president has pardoned or commuted the sentences of several people convicted of different types of fraud, including wire, securities, tax and health care fraud.

Last month, he pardoned Tennessee House Speaker Glenn Casada, who was convicted of fraud, money laundering and conspiracy.