David Gentile is the founder and former chief executive of GPB Capital Holdings, a New York private equity firm that raised roughly $1.8 billion from about 17,000 investors before collapsing into a federal fraud case. A jury convicted him of securities fraud, wire fraud, and conspiracy in August 2024, and he was sentenced to seven years in prison in May 2025. He served twelve days. On November 26, 2025, President Donald Trump commuted his sentence and eliminated a $15.5 million restitution obligation to victims.1Politico. David Gentile Fraud Restitution Trump
Who David Gentile Is
Gentile is a Brooklyn-born certified public accountant who spent roughly 25 years as a partner at his father’s accounting firm, Gentile Pismeny & Brengel, before launching GPB Capital in 2013.2Secretary of the Commonwealth of Massachusetts. Massachusetts Securities Division Complaint, E-2018-0100 He built the firm with Jeffry Schneider, an accounting client who ran Ascendant Capital, the exclusive marketing and placement agent for GPB’s funds.
GPB pitched itself as an alternative asset manager buying middle-market, income-producing companies. Its flagship holdings were car dealerships. At its peak, GPB’s Prime Automotive Group operated more than 50 dealerships, making it one of the larger dealership chains in the country.3U.S. Securities and Exchange Commission. GPB Automotive Portfolio LP Form 10-12G Gentile drew investors in with an 8% annualized return paid monthly, telling them the checks came out of portfolio company profits.4New York Attorney General. People v. GPB Capital Holdings
What the Fraud Was
Federal prosecutors and the SEC described GPB’s operations as a Ponzi-like scheme. The funds never generated enough income to cover the promised 8% distributions, so Gentile and his co-conspirators used roughly $100 million from newer investors to pay older ones, producing what prosecutors called an “illusion of success.”5U.S. Department of Justice. Former Private Equity Executives Sentenced to Prison
Between 2015 and 2016, Gentile and co-conspirator Jeffrey Lash created back-dated “performance guarantees” to inflate the reported income of two GPB funds. Gentile moved money through Lash’s accounts to look like legitimate guarantee payments, and the inflated numbers landed in audited financial statements sent to investors. Those doctored figures helped GPB raise about $1 billion in additional capital.5U.S. Department of Justice. Former Private Equity Executives Sentenced to Prison
The New York Attorney General’s complaint alleged that Gentile also enriched himself directly, diverting fund assets through shell companies, taking undisclosed stipends, shifting nearly $5 million in personal liabilities onto the funds, and using investor money for personal expenses including a Ferrari and payments to his wife.4New York Attorney General. People v. GPB Capital Holdings
Indictment, Trial, and Sentence
On February 4, 2021, federal prosecutors in the Eastern District of New York unsealed an indictment charging Gentile, Schneider, and Lash with securities fraud, wire fraud, and conspiracy. All three were arrested that day.6U.S. Department of Justice. GPB Capital Founder and CEO Among Three Individuals Indicted The SEC filed a parallel civil case the same day.7U.S. Securities and Exchange Commission. SEC Charges GPB Capital and Others With Fraud
Lash pleaded guilty to wire fraud in 2023. Gentile and Schneider went to trial together before U.S. District Judge Rachel P. Kovner. After eight weeks, an August 2024 jury convicted Gentile of securities fraud, securities fraud conspiracy, wire fraud conspiracy, and wire fraud. Schneider was convicted of the same charges except wire fraud.5U.S. Department of Justice. Former Private Equity Executives Sentenced to Prison
On May 9, 2025, Judge Kovner sentenced Gentile to seven years in federal prison and Schneider to six. Forfeiture and restitution decisions were deferred. Prosecutors later sought roughly $15.6 million in forfeiture from Gentile, and that proceeding began in August 2025.8The Wall Street Journal. GPB Fraud Perpetrator May Avoid Forfeiting Over $15 Million
The Trump Commutation
Gentile reported to federal prison on November 14, 2025. Twelve days later, on November 26, President Trump signed a grant of clemency commuting his seven-year sentence and wiping out his $15.5 million restitution obligation.1Politico. David Gentile Fraud Restitution Trump Because the action was a commutation rather than a full pardon, Gentile’s conviction stands and the court keeps authority over other penalties.9BBC News. Trump Commutes Sentence of GPB Capital CEO David Gentile
White House press secretary Karoline Leavitt said the prosecution reflected “weaponization of justice from the previous administration” and argued that GPB Capital had disclosed to investors the possibility that their money could be used for distributions to other investors. The White House also cited Gentile’s claim that prosecutors “elicited false testimony and failed to correct such testimony” at trial.10CNN. Trump Commutes Sentence of GPB Capital CEO David Gentile The New York Times reported that the clemency bypassed the Justice Department’s standard review process and called the decision “puzzling” given how little time Gentile had served.11The New York Times. David Gentile Trump Commutation
Congressional Response
On December 12, 2025, nine Democratic senators led by Ruben Gallego of Arizona sent a letter to President Trump condemning the commutation. The letter demanded explanations for why Gentile received clemency while Schneider did not, whether any of the roughly 17,000 defrauded investors were consulted, and what assurances existed that future fraudsters would face accountability. Senators Kirsten Gillibrand, Jack Reed, Adam Schiff, Catherine Cortez Masto, Tammy Duckworth, Peter Welch, Richard Blumenthal, and Chris Van Hollen co-signed.12Office of Senator Ruben Gallego. Gallego Leads Colleagues in Demanding Answers Over Trumps Pardon of Convicted Fraudster David Gentile No public response from the White House or the Department of Justice has been reported.
Schneider and the Forfeiture Question
Schneider was originally scheduled to report to prison in January 2026 and, as of mid-2026, had not entered a federal facility. After Gentile’s release, Schneider asked Judge Kovner to reduce his own sentence to time served, pointing to the disparity his co-conspirator’s twelve-day term created.13The Wall Street Journal. GPB Capital Fraud Co-Conspirator Jeffry Schneider Seeks Clemency
The commutation also raised an unresolved question about the $15.6 million forfeiture proceeding. Judge Kovner asked the Justice Department and Gentile’s defense to submit letters by December 16, 2026, on whether the clemency ended the forfeiture case. As of late 2026, the issue remained open.8The Wall Street Journal. GPB Fraud Perpetrator May Avoid Forfeiting Over $15 Million
What Investors Have Recovered
The commutation erased Gentile’s restitution to victims, but a separate civil track has returned some money. A court-appointed monitor took over GPB in February 2021, and the arrangement was converted to a full receivership in December 2023.14U.S. Securities and Exchange Commission. SEC Litigation Release LR-26290 GPB’s Prime Automotive Group was sold to Group 1 Automotive in 2021 for $880 million, funding the bulk of recoveries.8The Wall Street Journal. GPB Fraud Perpetrator May Avoid Forfeiting Over $15 Million
In April 2025, the court approved a plan sending about $400 million to roughly 13,700 investors in GPB Holdings II, GPB Automotive Portfolio, and GPB Cold Storage.15GPB Capital Holdings Receivership. GPB Capital Receivership Information In April 2026, a federal judge approved a separate $67.7 million settlement in the Kinnie Ma investor class action, with two more settlements pending against a Deloitte unit and Morrison Brown Argiz & Farra over valuation work for GPB.16Law360. GPB Investors Get $67.7M, Eye 2 More Settlements
Nearly 18,000 investors put roughly $1.8 billion into GPB’s funds. The New York Attorney General’s complaint estimated that by mid-2019 the fair market value of GPB’s portfolio had already fallen more than 40 percent below investors’ original contributions.4New York Attorney General. People v. GPB Capital Holdings The receiver has said further distributions will follow as remaining assets are liquidated, but no projected total recovery has been disclosed.