Justin L. Russell, 20, from Newport was charged with murder of David DePhillips, 38, also from Newport.
He will be housed at the Campbell County Detention Center.
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Police said that a witness gave a positive identification of the suspect and surveillance video corroborated those accounts.
"These cases have to develop very rapidly when it comes to evidence for us to have a good chance of us apprehending the suspect," said Lt. Chris Fangman of Newport Police. "The longer it goes, the tougher it gets and our Detectives did a great job."
Det. Dennis McCathy said that they had determined there was an exchange of counterfeit money for narcotics, which could be a potential motive for the killing. He could not say how much money was used in the drug buy.
Surveillance video showed a shadowy figure fire into DePhillips' cab and seconds later he could be seen driving almost two blocks before crashing into nearly a half-dozen other vehicles in the 900 block of Washington Street.
Police say that DePhillips was homeless and was staying in vacant properties, hotels and his taxi.
A female passenger, who police say was acquainted with DePhillips, was in the back seat of the taxi while the shooting took place.
Russell doesn't have much of a criminal record in Kentucky, but was arrested in November in Campbell County and charged with alcoholic intoxication in a public place.
This story will be updated.
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