ProPublica today reported that the FBI and the BIC raided the offices of Five Star Carting, a waste management firmed owned by Scientologist David Gentile’s GPB Capital Holdings. As we have been reporting, GPB Capital is under investigation by the SEC, FINRA, the FBI, and the BIC.
The raid on Five Star Carting occurred last week and was coincident with the FBI and the BIC showing up unannounced at GPB’s New York Office to seize documents.
From the ProPublica article:
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.
Most disturbing from the ProPublica article:
GPB Capital’s director of waste strategy is Rod Proto, former president and COO of Waste Management, who was fired in 1999 and then charged with insider trading by the SEC. In 2003, Proto agreed to pay a $3.7 million fine as well as to a five-year ban from serving as an officer or director of a public company. GPB Capital did not respond to questions about Proto’s role in the firm. Proto’s role in the firm. https://gpb-cap.com/portfolio/
New York’s BIC was created to fight organized crime in the waste management business, or what is called “carting” in New York. Carting is a traditional bastion of organized crime and yet Gentile’s GPB Capital Holdings invested in this business. Why would GPB make such risky investments in a market with lingering ties to organized crime? And certainly GPB’s hiring of Rod Proto with his past insider trading does not help GPB’s credibility.
According to its website, GPB Capital owns these cartage firms:
Categories: The Scientology Money Project