Democrats on the House Judiciary Committee said in a 25-page report that President Trump’s pardons have cost crime victims $1.7 billion in lost restitution and fines, according to MediasTouch. The investigation argued the pardons triggered a historic and “massive redistribution of wealth in favor of convicted criminals.” The committee released the report on Friday.
The report claimed Trump wiped clean court-ordered restitution so that convicted criminals no longer have to pay back stolen funds or repair damage from their crimes. It stated the pardons benefited Trump allies, wealthy donors and people convicted of fraud. Ranking member Rep. Jamie Raskin (D-MD) detailed dozens of cases that zeroed out unpaid fines, including $3 million owed by January 6 U.S. Capitol rioters.
The investigation argued that Trump demolished a rigorous and largely apolitical pardon system. It said pardons went to high-bidding convicts who lobbied through allies of the President or helped enrich those allies and their attorneys. The Democrats on the committee said this politicized approach undermines efforts to crack down on fraud.
Committee report details restitution wiped out in named fraud and other cases
The report emphasized the pardon of former Nikola CEO Trevor Milton, who it said was found guilty of defrauding investors. It stated, “Mr. Milton had been sentenced to four years in prison, and a federal judge was scheduled to rule on prosecutors’ recommendation that he be ordered to pay nearly $700 million in restitution to his victims.” The committee’s report underscored Milton’s support for Trump before the clemency grant.
The report said, “Mr. Milton and his wife donated over $1.8 million to committees supporting the President’s reelection, including $920,000 to the Trump 47 Committee in October 2024 and $750,000 in September 2024 to the MAHA Alliance super PAC affiliated with Robert F. Kennedy, Jr.” Milton received a pardon in March 2025, according to the Democrats.
The investigation found that victims of Jason Galanis were left without more than $80 million in restitution. Galanis pleaded guilty in 2020 to defrauding shareholders and clients in a market-manipulation scheme tied to Gerova Financial Group, the report noted.
The committee report said, “President Trump pardoned Mr. Galanis and wiped out any obligation to pay further fines or restitution. Days later, Mr. Galanis petitioned for the return of the $2 million he had already advanced to his victims. A federal court quickly denied this claim, outrageous even by the depraved standards of Trump pardonees.”
The report also spotlighted $37 million in restitution payments that were ended for victims of former Ozy Media leader Carlos Watson. Watson was pardoned while being taken to begin a federal prison term for fraud, the committee said. It noted a report that an Ozy official impersonated a YouTube executive in a call with Goldman Sachs to seek a $40 million investment. The committee said, “The defrauded investors will never be repaid.”
The report noted the 2025 firing of then-U.S. Pardon Attorney Liz Oyer. In a May 2025 essay, Oyer described politicization of the office and Ed Martin’s appointment.
She said Martin is an “ideological extremist who has none of the requisite qualifications. In fact, he is so extreme and unqualified that Senate Republicans tanked his nomination for the position of U.S. Attorney for the District of Columbia. Martin’s appointment is stunning because the Pardon Attorney has always been a nonpolitical appointee who undergoes rigorous vetting to be qualified as a member of the career Senior Executive Service. Martin has not gone through that process.”
A Justice Department spokesperson told Scott MacFarlane Reports, “Presidents of both parties have exercised their constitutional authority to grant pardons and commutations without consulting the Department of Justice. Under the Trump Administration, the Office of the Pardon Attorney continues to serve a key role in assisting the President.
The Department is committed to timely and carefully reviewing all applications and to make recommendations to the President that are consistent, unbiased, and uphold the rule of law. There has been no departure from this long-standing process.”
The Judiciary Committee Democrats said pardons of dozens of convicted fraudsters undermine the administration’s stated focus on cracking down on fraud.
The report said, “In recent months, often to justify immigration crackdowns or cuts to health care and food assistance programs, House Republicans have, hilariously, made ‘fighting fraud’ one of their central talking points… This is true. But convicted fraudster Donald Trump and the MAGA pardon industrial complex are all about committing fraud, protecting fraudulent schemes, and pardoning convicted fraudsters.”
The panel’s report argued that some recipients secured clemency by flattering Trump or making large payments to people close to him. Similar accounts have described lobbyists charging up to two million for access to possible clemency.
It highlighted the clemency of former Honduran president Juan Orlando Hernandez, who was convicted of conspiring to distribute hundreds of tons of drugs and sentenced to 45 years. Hernandez allegedly befriended powerful people “in President Trump’s orbit,” according to the Democrats’ review.
The report listed further examples, including the pardon of Adriana and Andres Camberos that ended $50 million in restitution and $30 million in forfeiture. It stated that Trump commuted a seven-year sentence for private equity executive David Gentile and removed a $15.5 million forfeiture.
The president also pardoned four BitMEX executives and ended $130 million in company fines, the Democrats said. One Louisiana case involved a rapper paid 600k then sued lobbyists after a promised pardon did not occur. The committee added that Democrats would gain subpoena power in 2027 if they take the House majority after the midterms.
Published: Aug 22, 2026 08:00 am