State fines "Yellow Cab" 100K

Yellow Cab, a Providence taxicab company is accused of rolling back odometers in order to keep cabs on the road longer.

According to the Division of Public Utilities and Carriers, the company which operates four taxicab corporations has been stripped of half its operating authority.

In a statement released on Friday, Division officials said the company has also been fined $100,000, after it was discovered the company routinely rolled back meters. The company's fine is the largest fine issued in the agency's history.

Division officials said in a settlement agreement, Yellow Cab acknowledged there was enough evidence to prove not only odometer rollback, but that the company also operated outside designated territories and sometimes would charge passengers and illegal flat rate.

According to the Division's rules, taxicabs are not to be used after hitting 200K miles or once they are 8 model years old.

As of a result of the findings, Yellow Cab will only be allowed to operate six out of their normal 12 vehicle fleet .

The six cabs that will continue to be operated will need to be re-inspected by Division officials before they are put back in use. Yellow Cab has also been place on probation for the next five years.

Division officials said the discoveries were made after new auditing procedures were put in place.