October 15, 2018
Latest military mess causing trouble for Feinberg’s private equity firm
Steve Feinberg’s big bets on war and weapons have gotten him into another financial mess – and this time his troubles are stoking concerns about potential conflicts of interest as he sits as an adviser to the White House.
The billionaire gun enthusiast’s buyout firm Cerberus Capital took a hit this spring as its US gunmaker, Remington, finally went bankrupt as losses piled up and investors fled amid outrage over school shootings, starting with the Sandy Hook, Conn., killings in 2012.
Separately, DynCorp also faces a federal whistleblower lawsuit, in which a former cost analyst for the company, Robert Reddell, alleges it hired a freight provider, Damco, which significantly overbilled the government for costs including fuel surcharges and oversize boxes, netting both DynCorp and Damco unjust profits.