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Waste hauling firm that lost license to operate in Westchester County still has contract with the county

City Carting of Westchester operating despite losing license in county
City Carting of Westchester operating despite losing license in county 02:01

WHITE PLAINS, N.Y. - It started with criminal charges related to big spending at the Hustler Club and other strip joints. 

It led to a waste hauling firm losing its license in Westchester County

So why is the firm still operating there? CBS2's Tony Aiello went looking for an explanation. 

The situation is far from ideal for Westchester County. 

It is allowing City Carting of Westchester to continue operating Westchester's main recycling facility under a multimillion dollar contract, even though the county has yanked the company's license to operate there. 

"This is not a service that can go interrupted. So until you have a replacement vendor, you're stuck with the entity that you know is problematic, and that's where Westchester County is right now," said Dan Schorr. 

Schorr is a former prosecutor and inspector general for Yonkers. He says the county was justified in pulling City Carting of Westchester's license after controversies involving general manager Christopher Oxer, the son of a top company official. 

Local prosecutors say Oxer used a company credit card to spend $135,000 at strip clubs. The spending was allegedly booked by the company as legitimate expenses such as tires, maintenance and tolls. The feds say Oxer avoided taxes on $800,000 in credit charges for strip clubs, escorts, vacations and clothes. 

"Those are red flags that there may be other misconduct and other misdeeds that are going on, if they're not following the laws that we do know about," Schorr said. 

The county can't suspend recycling operations, so while a new vendor is found, and that will take time, City Carting of Westchester is allowed to continue operating without Christopher Oxer or his father. 

"They are not allowed to be on the property at all. They are not to be involved in any business regarding the operation in Westchester County," said Westchester County Operations Director Joan McDonald.

It's a messy situation the county is working to clean up. 

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