NYC Taxi Disaster Driven by Decades of Inaction, ‘Massive’ Fraud

American Transit Insurance Co. liked to put on a show.

When ride-sharing companies were capturing bigger slices of the New York market, Uber executives were given box seats costing thousands of dollars to watch NBA games at Barclays Center. A few years prior, ATIC’s 40th anniversary celebration at the New York Athletic Club featured remarks by a state senator and a three-tier cake decorated with the city’s skyline and a sculpted taxicab.

And then there were charity events, lobbying and political donations — with at least $600,000 given over the past two decades to city, state and federal officials who hold ...