Trump's Pardons Nullify Nearly $300 Million in Financial Crime Penalties

President Donald Trump has used his clemency power to forgive financial crimes carrying nearly $300 million in fines and restitution during his second term, with a striking proportion benefiting wealthy executives and political allies. According to an NBC News analysis of presidential pardon records, Trump has nullified more financial penalties in one year than the total imposed on pardon recipients during the entire first term of his presidency.

The pardons have erased convictions for money laundering, bank fraud, wire fraud, and other financial offenses, with recipients including billionaires like Binance founder Changpeng Zhao, English soccer club owner Joe Lewis, and Venezuelan-Italian banker Julio M. Herrera Velutini. The financial penalties erased by these pardons exceed by $20 million the total nullified throughout Trump's entire first term.

Background and Context

Presidential pardon power has historically been used to address perceived injustices or provide second chances, but Trump's approach in his second term has shown a distinct pattern of favoring wealthy individuals convicted of financial crimes. The Office of the Pardon Attorney data reveals that Trump has pardoned more people in one year than President Joe Biden did in his entire four-year term.

While previous administrations typically reserved controversial pardons for later in their terms, Trump has moved quickly, describing pardons as a tool to combat what he calls a "weaponized" Department of Justice. The president has maintained that he is focusing on cases where individuals were "abused and used by the Biden Department of Justice" rather than targeting financial crimes specifically.

Key Figures and Entities

Among the most notable pardon recipients are several wealthy executives whose cases involved substantial financial harm. Binance founder Changpeng Zhao pleaded guilty to enabling money laundering on his cryptocurrency platform and was ordered to pay $50 million as part of his sentencing. Joe Lewis, owner of English soccer club Tottenham Hotspur, pleaded guilty to insider trading charges in 2023.

Another recipient, Julio M. Herrera Velutini, a Venezuelan-Italian banker, was pardoned while awaiting sentencing for campaign finance violations. The analysis identified 23 pardon recipients who each owed more than $100,000 in penalties, with cryptocurrency company HDR Global Trading Limited facing the largest single fine at $100 million for anti-money laundering violations.

Legal and Financial Mechanisms

Fines and restitution serve distinct purposes in federal criminal cases: fines are paid to the government as punishment, while restitution compensates victims for their losses. Trump's pardons nullify both types of penalties, raising questions about whether victims and government agencies will ever receive these funds. The Victims of Crime Act relies partly on criminal fines to fund victim compensation programs.

According to House Judiciary Committee Democrats, Trump's pardons may be "depleting funding for the Victims of Crime Act" and "undermining public safety at every turn." The committee's memo criticized the president for potentially depriving victims of compensation while benefiting wealthy individuals convicted of substantial financial crimes.

Policy Response and Oversight Concerns

The concentration of pardons for wealthy individuals has sparked concerns about potential financial and political influence on the clemency process. NBC News previously reported that the White House temporarily paused the pardon process amid concerns that it had become "a lucrative business for lobbying and consulting firms" during Trump's second term.

In one case detailed by The Washington Post, nursing home executive Joseph Schwartz, who pleaded guilty to a $38 million tax fraud scheme, reportedly paid $960,000 to lobbyists working to secure a presidential pardon. Trump later pardoned Schwartz despite his own administration having previously celebrated the sentencing as a victory against financial crime.

White House Press Secretary Karoline Leavitt has defended the process, stating that a "team of attorneys reviews every request" in coordination with the Department of Justice and White House counsel's office. However, the concentration of benefits to wealthy individuals continues to raise questions about equity in the application of presidential clemency power.

Sources

This report draws on NBC News analysis of presidential pardon data, Office of the Pardon Attorney records, court filings available through the Department of Justice, and House Judiciary Committee documentation. Information regarding the pardon process pause was sourced from NBC News reporting, while details about lobbying efforts were drawn from Washington Post coverage.