The I-Team received a tip about taxi permit holders who live out of state and don't even have a California driver's license and others who hold full-time jobs outside the industry and don't bother to drive a cab as required by law. The I-Team decided to check it out.
This lime green piece of metal is worth a lot of money. It's a taxi medallion, one of 1,381 permits issued by the city.
It's a rare commodity, given there are more than 6,000 licensed cab drivers in San Francisco. So they can rent a medallion or spend more than 10 years on the city's waiting list to finally own one.
Charles Rathbone, taxi driver: "It's really the only way you get a significant increase in income if you stay in the taxi business."
A driver can earn an additional $20,000 dollars to more than $40,000 dollars each year by renting out the medallion to a cab company or other drivers.
San Mateo Superior Court Judge Quentin Kopp was a San Francisco supervisor in the late 70's when he authored the ballot measure that set the rules on medallion ownership.
Judge Quentin Kopp, former San Francisco supervisor: "The point of Proposition K was to end the sorry business of using a publicly-issued medallion as a personal asset for personal profit."
The problem? The medallions were meant for working drivers, but many people who were not driving a taxi saw the permits as a way to make a quick buck.
Judge Quentin Kopp, former San Francisco supervisor: "There were permit holders who lived in Hawaii, who lived in Oregon, didn't even live in the Bay Area, didn't live in California."
And problems with the system persist to this day. The San Francisco Taxi Commission is investigating several medallion holders. Among them is Lauretta Tacchini. She owns an upscale purse shop in Danville's Blackhawk Shopping Center and she owns taxi medallion number 1159. We found the cab using her permit -- Lauretta Tacchini wasn't behind the wheel.
Tax driver: "Ah, yeah, yeah, she drives two shifts for me."
I-Team producer: "Which shifts does she drive?"
Tax driver: "You're a funny guy."
The owner of Royal Cab Company tells the I-Team Lauretta Tacchini hasn't driven at all this year or last and records at the Taxi Commission confirm that. Tacchini has an Americans with Disabilities Act accommodation but she's still supposed to drive a cab at least 533 hours a year.
Heidi Machen, Taxi Commission executive director: "The medallion holders who are not driving, who are not meeting their driving requirement, are taking money out of the pockets of the working cab driver."
Lauretta Tacchini refused to be interviewed. In fact, she drove away after spotting our camera outside her Blackhawk purse shop. So we tried to interview her husband, the head of the San Francisco Police taxi detail at the time Lauretta applied for her medallion in 1987.
Steve Tacchini is now one of the SFPD's top brass, in charge of field operations.
Commander Steve Tacchini, SFPD: "Not right now, I'm a little busy. We'll talk later if you like."
ABC7's Dan Noyes: "Oh really, like when?"
Commander Steve Tacchini, SFPD: "Later in the week, a little busy with the Fourth of July and All-Star game right now."
Commander Tacchini agreed to an interview after the All-Star game but backed out, e-mailing us a statement that reads in part:
"Lauretta has utilized her medallion in compliance with the rules established by the City Charter and Taxi Commission" and that his wife "has never been afforded any special or preferential treatment."
Lauretta Tacchini wrote, "people who would like to own a taxi medallion ... accuse current owners of untoward acts in the hopes that such meanness will cause another person to leave the business. Well, not this owner."
Neither of them addressed the contention from the Taxi Commission that Lauretta Tacchini's among many medallion owners who are breaking the rules by not driving.
Heidi Machen, Taxi Commission executive director: "If I had to say how many of the medallion holders are actually driving their taxis on a regular basis, meeting all their requirements, definitively, today, I would say 50 percent."
The Taxi Commission is also investigating Jack and Sylvia Dudum as another case of medallion owners who don't drive a cab. Each of them has had a taxi permit for eight years, earning hundreds of thousands of dollars.
We stopped by their home in Alamo -- 5,500 square feet with a pool and putting green. It's worth about $3 million dollars in today's market. We spotted Jack Dudum walking into the house, but couldn't get him to speak with us.
Person on intercom: "Sorry, he's not home."
ABC7's Dan Noyes: "I just saw him go in I thought."
Person on intercom: "No, that was not him."
ABC7's Dan Noyes: "Is Sylvia there please? Is this Sylvia?"
Person on intercom: "Yes, who's this please?
Despite our visit and several phone calls, Jack and Sylvia Dudum would not discuss their taxi medallions. But a search of public records shows what their primary business is -- real estate. The couple owns more than $16 million dollars worth, from stores and a warehouse, to two condos on a Palm Desert golf course.
Nicholas Delucca, taxi driver: "I think it sucks. We struggle out here every day trying to make a living, you know, and it's pretty hard."
The working cabbies we interviewed say medallion holders like the Dudum's and Lauretta Tacchini give all of them a bad name.
Aureo China, taxi driver: "The medallion is supposed to be for the hardworking drivers, the everyday drivers."
Majid Ghorbani, taxi driver: "It is cheating. Yes, sir, it is cheating. Cheating the system."
And the Taxi Commission's executive director agrees. She's considering taking the Tacchini and Dudum cases to the full commission next month, along with other cases of taxi medallion holders who appear to be breaking the rules.
By the way, there are about 300 drivers who got their medallions before Proposition K, so they have no driving requirement.
Have a tip on this or another investigation? E-mail the ABC7 I-Team or call 1-888-40-I-TEAM.
