Man who leases taxi medallions to cabbies charged with forgery

A taxi medallion agent from Levittown was one of three accused of forging drivers' names on leases submitted to the New York City Taxi & Limousine Commission, the New York City Department of Investigation said Wednesday.

Magdy M. Elghonami, 59, president of Mag Taxi in Long Island City, was arraigned Wednesday in Manhattan Criminal Court on felony charges: two counts of first-degree falsifying business records, two counts of first-degree offering a false instrument for filing, second-degree forgery and second-degree criminal possession of a forged instrument. He was released on his own recognizance.

On two of his leases submitted in February 2012, drivers said they had not signed and had not seen the agreements, according to officials from the commission and the investigations department. Elghonami forged the drivers' names and backdated the leases, authorities said.

Two other medallion agents, one from Manhattan and the other from Staten Island, were arraigned on similar charges, officials said.

Elghonami could not be reached for comment, but his attorney, Cynthia Fisher of Manhattan, called him a "good, decent" man who willingly went to speak with investigators, not knowing they were going to arrest him later.

"Whatever mistakes he made, he didn't defraud anyone," she said. She said city officials are "making a mountain out of a molehill" in accusing her client.

The investigation by the two city agencies started after the Taxi & Limousine Commission in February 2012 directed taxi agents and businesses to produce medallion lease agreements.

A medallion is a TLC plate number that must be displayed on a driver-owned cab as proof that the vehicle is licensed as a cab. Medallion agents and owners charge for leasing out medallions, and the lease agreement is supposed to stipulate all the fees.

Not infrequently, drivers have complained about unreasonable charges and high fees.

Fisher said her client signed the drivers' names with their consent. He told her it's often difficult getting cabbies to come in to sign agreements, she said, and drivers often say, "I can't get down there."

City officials said the arrests should be a warning to medallion agents.

"These arrests show that forgery is not a detour around the TLC's rules and regulations," said Rose Gill Hearn, commissioner of the investigations department.

TLC Commissioner David Yassky said the investigation helps ensure drivers aren't cheated: "Taxi drivers work long hours in demanding jobs, and they have the right to be paid fairly."