When and where was David Gentile arrested and what charges were brought against him?
Executive summary
David Gentile was arrested by FBI agents on February 4, 2021, the same day the U.S. Department of Justice unsealed an indictment charging him in connection with the collapse of GPB Capital’s funds [1]. Federal prosecutors later tried and convicted him on multiple counts including securities fraud, securities fraud conspiracy, and wire fraud (he was also convicted of wire fraud), following an August 2024 jury verdict and a subsequent seven‑year sentence imposed in May 2025 [2] [3] [4].
1. Arrest timing and how it unfolded
Federal law enforcement moved on Gentile in a coordinated action when the Justice Department unsealed criminal charges on February 4, 2021, and FBI agents arrested him and two co‑defendants that same day; contemporaneous civil actions were filed by the Securities and Exchange Commission and several state attorneys general [1]. The reporting identifies the operation as a coordinated crackdown by federal authorities but the available sources do not specify a city or facility where Gentile was physically taken into custody, only that FBI agents executed the arrests following the unsealing of the indictment [1].
2. The criminal accusations lodged in the indictment
The indictment and later trial centered on allegations that Gentile and associates ran a Ponzi‑like investment scheme at GPB Capital, raising roughly $1.6–$1.7 billion from thousands of investors while misrepresenting fund performance and using new investor funds to pay earlier distributions [1] [3]. The government’s theory, reiterated at sentencing, accused Gentile of inflating revenues, routing funds to create the appearance of guaranteed payouts, and otherwise concealing shortfalls to perpetuate the scheme [2] [5].
3. Specific criminal charges prosecuted and the trial outcome
At trial, Gentile faced—and the jury found him guilty of—multiple federal crimes: securities fraud, securities fraud conspiracy, wire fraud conspiracy, and an individual count of wire fraud; co‑defendants were convicted on related counts as well [2] [3]. The August 2024 guilty verdict followed an eight‑week trial in federal court in Brooklyn, where prosecutors presented the scheme as having defrauded more than a billion dollars from investors [2] [5].
4. Sentencing, civil remedies, and enforcement context
U.S. District Judge Rachel P. Kovner sentenced Gentile in May 2025 to seven years in federal prison, with forfeiture and restitution to be determined later; the Department of Justice framed the sentences as punishment for a scheme that “wove a web of lies” to steal investor funds [2] [6]. The SEC had simultaneously placed GPB into receivership and pursued civil claims against Gentile and others, amplifying the regulatory enforcement alongside criminal prosecution [1] [3].
5. Aftermath and competing narratives
After serving only days of his November 2025 term because President Trump commuted his sentence, the case took on political dimensions: the White House defended the commutation and disputed aspects of the prosecution’s case, while victims’ advocates and plaintiffs’ lawyers expressed outrage that a seven‑year sentence was effectively undone [7] [4] [8]. Reporting shows the factual arc—from the 2021 arrests and 2024 convictions to the 2025 sentence and clemency—but also makes clear that the clemency action and political responses created competing narratives about accountability and the adequacy of justice for defrauded investors [9] [10].