David Gentile

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David Gentile
Born:
New York
Charges: Conspiracy to commit securities fraud, Conspiracy to commit wire fraud, Securities fraud, Wire fraud (2 counts)
Sentence: 84 months (commuted)
Facility: Federal prison
Status: Released (sentence commuted December 2025)

David Gentile is an American businessman and former CEO and co-founder of GPB Capital Holdings, a private equity firm based in New York. In August 2024, Gentile was convicted by a federal jury of securities fraud, wire fraud, and conspiracy for his role in defrauding more than 10,000 investors out of approximately $1.6 billion.

Gentile was sentenced to seven years in federal prison in November 2024 and reported to custody on November 14, 2024. On December 1, 2025, President Donald Trump commuted his sentence. Gentile was released from prison on December 3, 2025, having served only 12 days of his seven-year sentence.

Summary

GPB Capital Holdings raised $1.6 billion from investors between 2014 and 2018 to acquire companies in the auto dealership, retail, healthcare, and housing sectors. Gentile and his co-conspirators marketed GPB's funds to retail investors, many of whom invested retirement savings, promising consistent returns and professional portfolio management.

In reality, prosecutors proved that GPB Capital used new investor money to pay distributions to earlier investors—a hallmark of a Ponzi scheme. Gentile and co-defendant Jeffrey Schneider, GPB's chief compliance officer, misrepresented the performance of three private equity funds, concealing losses and fabricating returns to attract additional investment.

The scheme collapsed when GPB stopped paying investor distributions in 2018 and the company came under investigation by multiple federal and state authorities. Thousands of investors—many of them retirees who invested through broker-dealers—lost substantial portions of their savings.

Background

GPB Capital Holdings

GPB Capital Holdings was founded in 2013 as a private equity firm focused on acquiring income-producing operating companies. The firm marketed itself as an alternative investment opportunity for accredited investors seeking stable returns outside of traditional securities markets.

GPB raised capital primarily through broker-dealers who sold limited partnership interests to retail investors. The firm's marketing emphasized its strategy of acquiring profitable businesses that would generate steady cash distributions for investors.

GPB's largest investments were in auto dealerships, which it acquired through its GPB Automotive Portfolio fund. The company also invested in waste management, healthcare staffing, and mobile home parks through other funds.

The Fraud Scheme

According to federal prosecutors, Gentile and his co-conspirators:

  • Misrepresented the financial performance of GPB's funds to investors
  • Used new investor capital to pay distributions to existing investors, rather than profits from operations
  • Fabricated financial statements and investor communications
  • Concealed mounting losses and operational failures
  • Paid themselves excessive management fees regardless of fund performance

The scheme began unraveling in 2018 when GPB announced it would stop paying investor distributions and delay required financial filings. Investigations by the SEC, FBI, and state attorneys general followed.

Indictment, Prosecution, and Sentencing

SEC Charges (2021)

In February 2021, the Securities and Exchange Commission charged Gentile, Schneider, and GPB Capital with securities fraud. The SEC described the scheme as "Ponzi-like" and alleged that GPB had misrepresented fund performance and improperly used investor funds.

Criminal Indictment

In 2021, federal prosecutors in the Eastern District of New York indicted Gentile on charges including:

Trial and Conviction

David Gentile's trial took place in federal court in Brooklyn. In August 2024, after a multi-week trial, the jury convicted Gentile on all counts:

  • Conspiracy to commit securities fraud
  • Conspiracy to commit wire fraud
  • Securities fraud
  • Two counts of wire fraud

Co-defendant Jeffrey Schneider was convicted alongside Gentile.

Sentencing

In November 2024, Gentile was sentenced to seven years (84 months) in federal prison. The sentence reflected the severity of the fraud and its impact on more than 10,000 victims, many of whom lost retirement savings.

Gentile was ordered to surrender to federal custody and reported to prison on November 14, 2024.

Presidential Commutation

The Commutation

On December 1, 2025, President Donald Trump commuted David Gentile's sentence. Unlike a pardon, a commutation does not erase the conviction—it only reduces or eliminates the remaining sentence. Gentile's convictions remain on his record.

Gentile was released from federal prison on December 3, 2025, having served only 12 days of his seven-year sentence.

Alice Marie Johnson's Role

Alice Marie Johnson, President Trump's informal "pardon czar," publicly supported Gentile's release. On Thanksgiving Day 2024, just weeks before the commutation, Johnson posted on social media that she was "deeply grateful to see David Gentile heading home to his young children."

Johnson, who was herself granted clemency by Trump in 2018 after serving 21 years on drug charges, has advocated for numerous clemency petitions during Trump's second term.

White House Justification

White House Press Secretary Karoline Leavitt stated that Gentile's prosecution was "another example of the weaponization of justice from the previous administration" and rejected characterizations of GPB Capital as a Ponzi scheme.

Criticism

The commutation drew criticism from legal observers and victim advocates who noted:

  • Over 10,000 investors lost money in the GPB Capital fraud
  • Many victims were retirees who invested retirement savings
  • Gentile served only 12 days of a 7-year sentence
  • The commutation was granted before any restitution was paid to victims

The New York Times reported that it was unclear whether Gentile had connections to Trump or Trump supporters that led to the commutation.

Ongoing Civil Litigation

While the commutation ended Gentile's prison sentence, it did not affect civil litigation against him. New York Attorney General Letitia James filed a civil lawsuit against Gentile and other GPB defendants in 2021. That case continues.

A source familiar with the Attorney General's case told NBC News that the office is aware of Trump's commutation and that it does not change the merits of the civil case against Gentile.

Terminology

  • Ponzi Scheme: A fraudulent investment operation where returns to earlier investors are paid using capital from newer investors, rather than from legitimate business profits.
  • Commutation: A reduction of a criminal sentence by executive action. Unlike a pardon, a commutation does not eliminate the conviction.
  • Private Equity: Investment funds that pool capital from investors to acquire ownership in companies not publicly traded on stock exchanges.
  • Securities Fraud: A type of white-collar crime involving deception in connection with the purchase or sale of securities.

See also

Frequently Asked Questions

Q: What did David Gentile do?

David Gentile was CEO of GPB Capital Holdings, a private equity firm that raised $1.6 billion from more than 10,000 investors. He was convicted of securities fraud and wire fraud for misrepresenting fund performance and using new investor money to pay returns to earlier investors in a Ponzi-like scheme.


Q: How long was David Gentile's prison sentence?

David Gentile was sentenced to 7 years in federal prison in November 2024. However, he served only 12 days before President Trump commuted his sentence on December 1, 2025.


Q: Did David Gentile receive a pardon?

No, David Gentile received a commutation, not a pardon. A commutation reduces or ends the prison sentence but does not erase the conviction. Gentile's federal convictions remain on his record, and he continues to face civil litigation.


Q: How much money did GPB Capital's fraud involve?

GPB Capital raised approximately $1.6 billion from more than 10,000 investors, many of whom were retirees investing retirement savings. The company claimed to invest in auto dealerships, healthcare, and housing, but used new investor money to pay existing investors.


Q: Does David Gentile still face legal consequences?

Yes, while the commutation ended his prison sentence, Gentile still faces ongoing civil litigation. New York Attorney General Letitia James sued Gentile in 2021, and that case continues. He may still be liable for damages to defrauded investors.


References


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