HALLANDALE BEACH, Fla. – In a notable move, President Donald Trump has reduced the prison term of David Gentile, a former investment manager who faced conviction for defrauding investors. This decision is the latest in Trump’s recent actions involving clemency for white-collar crimes.

Gentile, who had only just begun serving his sentence on November 14, received the commutation shortly thereafter. The decision was confirmed by a White House insider, who spoke on condition of anonymity. Gentile was previously the CEO and co-founder of GPB Capital, an investment firm that amassed $1.6 billion to invest in sectors like automotive, retail, healthcare, and housing.

His conviction in August 2024 had led to a seven-year prison sentence. The Justice Department accused him of orchestrating a scheme that misled over 10,000 investors about the financial health of three private equity funds.

However, the White House contends that GPB Capital had informed investors back in 2015 that their funds might be used to pay dividends to other investors. This disclosure, according to the White House, challenges the allegations of a “Ponzi” scheme, where new investors’ funds are used to pay returns to earlier ones.

While restitution was not part of the criminal proceedings, several civil lawsuits are currently addressing how investors might be compensated for their losses.