FBI, NYC Regulators Search Offices of Five Star Carting

The Federal Bureau of Investigation (FBI) and New York City regulators recently searched the offices of Five Star Carting. It’s unknown what authorities were looking for in the offices, according to a ProPublica report, but the investment firm of the hauler, GPB Capital Holdings, stated it has been cooperating for months with a joint federal and city inquiry.

In 2017, InvestmentNews reported the Securities and Exchange Commission and the Financial Industry Regulatory Authority Inc. conducted investigations looking into GPB Capital over the accuracy of its disclosures to investors. And last year, ProPublica published a report on Five Star Carting’s labor and safety record, which includes a $400,000 settlement in a wage-related class-action lawsuit.

It’s unknown if this raid was related to those previous probes or if this investigation is looking into another issue.

ProPublica has more information:

The FBI and New York City regulators raided the corporate offices of a major private trash hauler last week, the latest sign of trouble for an industry under fire.

It is unclear what the authorities were seeking at the offices of Five Star Carting, but the investment firm that owns the hauler, GPB Capital Holdings, said it has been cooperating for months with a joint federal and city inquiry. The city’s private trash industry is overseen by the Business Integrity Commission, or BIC, which is tasked with rooting out corruption and other misconduct in an industry once dominated by organized crime.

“Recently, we have been cooperating with inquiries from various authorities and the visit on February 28, 2019 from the FBI and the New York City Business Integrity Commission, while unscheduled, was a part of that process,” a spokesperson for GPB Capital said in a statement. “We will continue to cooperate with inquiries and are confident that as we move forward our portfolio companies are stable and well positioned for the future.”

Read the full story here.