‘Bandit’ Limo Firm to Pay Fine to Settle Suit

A so-called bandit limousine company has agreed to pay a $10,000 fine to settle a lawsuit filed by Los Angeles City Atty. James K. Hahn, who accused the company of operating without proper insurance and licensing.

Sir Michael’s Limousines also agreed to reimburse the state for the costs of investigating the unlicensed company, according to Deputy City Atty. Fay Chu. The settlement was approved Thursday by Los Angeles County Superior Court Judge Robert Lopez.

Calling bandit limousines “a significant public safety problem,” Hahn filed suit in November against three companies. The Public Utilities Commission, which regulates the industry, said that up to half the companies that advertise in the Yellow Pages are bandits and that illegal operators have been involved in prostitution, drug sales and hit-and-run accidents around the state.

Bandits have turned up in Sacramento, San Jose, and elsewhere in the state, but the PUC said Los Angeles has the worst problem.

Illegal operators are also blamed for driving legitimate companies out of business. By not carrying the required $750,000 public liability insurance policy, bandit companies can charge as much as $10 an hour less than legal operators for their services. Members of the public are often unaware that they are being cheated unless they have a bad experience, such as being left stranded on prom night, investigators said.

“We’re pleased with it,” Chu said of the $11,615 settlement. The total includes $1,615 to reimburse the PUC. “This has been a costly lesson.”

Michael Nogueira, owner of Sir Michael’s, called the settlement “very fair” but denied being a major violator. He said he did not know about the insurance requirement. Much of the work for his company’s four limousines comes from mortuaries, which he said are satisfied with a lower amount of insurance than the state requires.

As for the industry as a whole, “I could name thousands” of illegal operators, he said.

The city attorney’s office and the PUC have vowed that these lawsuits are only the beginning of their stepped-up efforts to police the industry. “Our office will not tolerate this,” Chu said.