Federal prosecutors target possible NYC taxi loan fraud

NEW YORK (AP) — Federal prosecutors have opened an investigation into possible lending fraud in New York City's troubled yellow taxi industry.

The New York Times reports that the U.S. attorney's office in Manhattan is investigating the lending practices that led thousands of cab drivers to take out high-risk loans that left them buried in debt.

The drivers took out large loans to buy the medallions that allow a person to operate a yellow taxi. They were crushed by debt when the value of a medallion plunged from more than $1 million in 2014 to less than $200,000 today.

Federal prosecutors have not commented on the investigation, but two drivers told the Times they had been interviewed by federal agents as part of the probe.

Driver Mohammed Hoque said, "I told them everything."

On-Air & Up next

See the Full Program Guide