Shady NYC Taxi Lending Probed By Federal Prosecutors: Report

NEW YORK — Federal prosecutors are investigating predatory lending practices in New York City's taxi industry that saddled struggling cabbies with massive debts, a new report says.

The new probe by the U.S. Attorney's Office in Manhattan is examining whether bank, wire or mail fraud occurred in an industry that allowed drivers to take on exploitative loans, The New York Times reported Tuesday.

The inquiry follows the Times's exposé on taxi lending that also sparked an investigation by state Attorney General Letitia James and a review by Mayor Bill de Blasio's administration.

Federal agents have talked with several cabbies over the past month who were apparently encouraged to take out huge loans for taxi medallions, permits that allow owners to operate yellow cabs, according to the Times.

"I told them everything," Mohammed Hoque, who reportedly took out a $1.7 million medallion loan with an annual income of roughly $30,000, told the paper. "I hope they help us."

Lenders and brokers in the taxi industry have denied wrongdoing, saying drivers took on too much debt and blaming ride-hailing apps such as Uber and Lyft for the taxi industry's financial crisis, the Times reported.

Read the Times's full report here.