A $1.7 Million Loan, $30,000 in Income. Prosecutors Are Now Investigating.

[mfcorey1]

In the past month, agents have interviewed cabdrivers who said they were encouraged to take on massive debt under exploitative terms in order to buy a taxi medallion, the city permit that allowed them to own their own cab.


The investigation, which is in its beginning stages, appears to be looking at possible crimes including bank, wire or mail fraud.

The inquiry is being conducted by the United States Attorney’s Office for the Southern District of New York. It could reverberate throughout the city’s taxi industry, which has been engulfed in a financial crisis and rocked by a string of suicides among cabdrivers. More than 950 drivers have filed for bankruptcy, and many more are still buried in overwhelming debt today.

Asked about the investigation on Monday, a spokesman for the United States attorney’s office declined to comment. New York’s attorney general, Letitia James, is also conducting her own inquiry into the industry.

“I told them everything,” said Mohammed Hoque, 48, one of two drivers who said they were interviewed by federal agents and whose debt was so overwhelming he lost his medallion. “I hope they help us.”

Mr. Hoque, who was featured in articles by The New York Times about the lending practices, bought his medallion in 2014 and signed a loan that required him to pay $1.7 million, even though his annual income was only about $30,000. He said he did not understand the terms of his loan.

https://www.msn.com/en-us/money/markets/a-dollar17-million-loan-dollar30000-in-income-prosecutors-are-now-investigating/ar-AAH4C1j?li=BBnb7Kz&ocid=mailsignout

[dixiegrrrrl]

1. remember that Michael Cohen and his dad were heavily into those medallions.

I couldn't figure out what the deal was, but knew it had to be something shady, of course.

[UpInArms]

2. GMTA

You posted my very first thought

eta

Michael Cohen was $22M in debt because of his taxi medallions

Michael Cohen owed $22 million in loans against the taxi medallions he owned — and allegedly lied in order to try to clear the massive debt, according to court documents unsealed Tuesday.

The extent of the financial woes racked up by President Trump’s former personal attorney and fixer emerged in just-unsealed filings related to search warrants in special counsel Robert Mueller’s investigation.

The documents show that federal prosecutors in Manhattan and the FBI were zeroing in on Cohen’s taxi businesses — including “misrepresentations” and omissions he made “in connection with a transaction intended to relieve Cohen” of the $22 million debt.

... snip ...

The once-rare taxi medallions — which at their peak were worth as much as $1.2 million apiece — tanked to just an average of $200,000 each after ride-share services like Uber and Lyft exploded in the city.

[dixiegrrrrl]

4. He lost millions on his loan.......

I love it when justice happens.

[pecosbob]

3. 3,530 medallions are issued in Las Vegas...taxi companies pay $100 per medallion per year

The current lease price per medallion is $1100 per week.

https://www.nevadacurrent.com/2019/09/10/cab-drivers-confront-lawmakers-seek-protection-from-predatory-companies/