Trump releases fraudster executive days into prison sentence

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 entering prison.

Gentile, the former chief executive and founder of GPB Capital, was convicted last year in 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 on securities and wire fraud charges in August last year and sentenced to prison in May. Co-defendant Jeffry Schneider was also sentenced to six years in prison for the same charges.

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

“The sentences imposed today are well deserved and should serve as a warning to those who seek to commit fraud. [sic] “Getting rich by taking advantage of investors will only get you a one-way ticket to jail,” he said.

But the White House says the Justice Department under former President Joe Biden made many missteps and was aware that investors’ money could be going to others’ dividends.

“Even though this situation was disclosed to investors, the Biden Justice Department claimed that this was a Ponzi scheme,” the White House official said.

“This claim is deeply undermined by the fact that GPB clearly told investors what would happen.”

The official also addressed Gentile’s concerns that prosecutors had given false testimony.

Trump’s commutation of Gentile’s sentence does not exonerate him of his crimes and spare him any other potential penalties imposed, as a full presidential pardon would.

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

Last month, the state of Tennessee pardoned House Speaker Glen Casada, who was convicted of fraud, money laundering and conspiracy.