As we previously reported, the U.S. Securities and Exchange Commission (“SEC”), Financial Industry Regulatory Authority (known as “FINRA”), the FBI, and the State of Massachusetts are investigating GPB Capital Holdings LLC (“GPB”) With all the recent news regarding GPB, one investigative authority has fallen under the radar – The New York City Business Integrity Commission.
If you’ve never heard of the Business Integrity Commission, or BIC, you’re not alone. In fact, unless you worked for the City of New York in the Sanitation Department, you would most likely never have heard of BIC. That is because BIC is charged with investigating and rooting out corruption in the private garbage hauling industry in New York.
Waste management was once an area controlled by organized crime, but now is partially run by investment companies like GPB. In 2017, GPB acquired the private waste management company Five Star Carting and renamed it GPB Waste NY. The current director of waste strategy for GBP Capital is Rob Porto, a familiar name as he was the former President and COO of Waste Management until he was fired in 1999, charged with insider trading by the SEC, and paid a $3.7 million, and banned from serving as an officer or director of a publicly traded company for five years.
Prior to the purchase and rename by GBP, Five Star Carting had a record of issues, including reportedly unsafe trucks with faulty steering and brakes, and a recent $400,000 settlement in a wage class-action lawsuit.
GPB Waste NY/Five Star’s reportedly has a relationship with the independent labor union LIFE 890, which is currently the subject a federal grand jury investigation. Last week, GPB Capital admitted that the FBI and BIC raided GPB Waste NY/Five Star’s office. It is important to note that thus far there is no indication that this most recent investigation is related to the ongoing investigation of GPB Capital’s private place investments.
Some of the private placement offerings sold by GPB are as follows:
GPB Holdings LP
GPB Holdings II
GPB Holdings III
GPB Automotive Portfolio LP
GPB Waste Management, LP
GPB NYC Development LP
The attorneys at Law Office of Christopher J. Gray, P.C. have significant experience representing investors in connection with complex investment products, including illiquid private placements and unregistered securities offerings. Investors may contact us via the contact form on this website, by telephone at (866) 966-9598, or by e-mail at email@example.com for a no-cost, confidential consultation. Attorneys at the firm are admitted in New York, New Jersey, Wisconsin and various federal courts around the country, and handle cases nationwide (in cooperation with attorneys located in those states if required by applicable rules.