Limo/Taxi extortion racket continues unabated

LAS VEGAS - In this 2005 Las Vegas Sun photo, hundreds of local cabbies are shown blocking the Las Vegas Strip in protest of a proposed bill then-awaiting ratification by the Nevada Legislature that would have prohibited many of them from taking pay off's from business owners for delivering patrons to their strip clubs and other tourist dependent businesses.

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After extraordinary pressure was presented by transportation company owners and some casino executives, the bill was vetoed by then-Governor Kenny Guinn, and the illegal practice has been allowed to continue to the present day. Shortly after the 2005 veto, some limo and taxi drivers declared victory and vowed to use the same tactics with the addition of threatening to block access to McCarran International Airport if the need should again arise. Transportation company owners remained strangely silent and did not protest the use of their vehicles in such demonstrations while local citizens and out of state visitors complained loudly about being inconvenienced and threatened, along with the local's continued complaints about receiving poor taxi service in neighborhoods because most available cabs spend their late nights idling in front of strip clubs with their radios turned off, and are not available for neighborhood pick ups. This past week the story made headlines again when local business owners renewed their complaints that if they depend on tourist's business, they stand to be extorted by unscrupulous limo and taxi drivers who have the ability to suggest their fares go elsewhere. New complaints came from owners of wedding chapels, off-Strip restaurants, pawn shops, bridal shops, and florists, some saying drivers demand up to $100 per passenger delivered, or they will recommend other businesses that agree to pay their demands. A citizen's group was formed, and attorney Al Marquis was hired to try to convince state authorities to do their job. The group developed a web site; wedontdobusinessthatway.com to tell the story. But they're facing an uphill battle because some limo and cab company owners condone the extortion practice since it saves them the expense of having to pay a living wage and benefits to their drivers. It also allows them to claim they need more vehicles to meet the demands of locals and conventioneers. After no company owners complained when their equipment and personnel were involved without permission in the 2005 civil disobedience, some observers began to ask how our state government could be so controlled by the threat of only one industry, and why public roadways were allowed to be used to threaten the Governor, especially when the limo and taxi industries are supposed to be regulated by state law? Keep in mind that most cab and limo drivers in Vegas are moral law abiding citizens. However, in most other states these same drivers can own their own cabs or limos and compete with the largest of transportation companies. In Nevada and only two other states, an unconstitutional "Adverse Impact Law" exist that allows competing transportation businesses to "intervene" when a new application comes forward, and argue that the newbie will cut into their bottom line. In all cases I've studied, the existing limo and taxi operators prevailed, and no new companies were allowed. Meanwhile, the extortion demand is now topping $100 per passenger delivered to local strip clubs, and one club has reportedly begun paying drivers $120 per patron! What's most amazing is that the Internal Revenue Service has been aware of the racket for over 19 months -- and has done nothing. The following letter was sent via U.S. Certified Mail on September 5, 2007, and its delivery receipt was signed by an employee of the IRS Fraud Division two days later. See Photos, Files and More information