Uber Fined $8.9 Million For Drivers With Felonies, DUIs In Colo.

DENVER, CO -- The ride-sharing company Uber was fined $8.9 million Monday by the Colorado Public Utilities Commission for allowing 57 drivers with criminal backgrounds, motor vehicle violations or without drivers licenses to work in Colorado. The civil penalty assessment notice to Raisier, LLC, (Uber's parent company) followed an investigation into drivers on the road over the last year and a half. The company was cited $2,500 a day for each day a disqualified driver was found to have worked.

The investigation was started after the Vail Police Dept. complained to the PUC that an Uber driver allegedly assaulted a passenger. The agency cross-checked records with court databases and the Colorado Crime Information Center and found that Uber was allowing certain disqualified drivers to work for the company.

The investigation found "felony convictions, major moving violations (DUI, DWI, reckless driving, driving under restraint), and numerous instances of individuals driving with suspended, revoked or cancelled driver’s licenses," according to a statement from the PUC.

One driver, who went by an alias, was a convicted felon, habitual offender and at one point had escaped from prison in Colorado. "Nevertheless, after he was released from prison, he became a driver for Uber," the PUC's statement said.

“We have determined that Uber had background check information that should have disqualified these drivers under the law, but they were allowed to drive anyway,” PUC Director Doug Dean said in a statement “These actions put the safety of passengers in extreme jeopardy.”

Under Colorado law, ride-sharing and other transportation network companies must do the following:

• Perform a criminal history record check
• Obtain and review a driving history report
• Drivers must have a valid driver’s license.

Companies are required to disqualify drivers who have been convicted of specific offenses such as felony convictions, alcohol or drug-related driving offenses, unlawful sexual offenses, and major moving vehicle violations, the PUC statement said.

Investigators found 12 drivers with felony convictions; 17 drivers with major moving vehicle violations; three drivers with interlock driver’s licenses, which are required after recent drunk driving convictions; and 63 drivers with driver’s license issues.

“PUC staff was able to find felony convictions that the company’s background checks failed to find, demonstrating that the company’s background checks are inadequate,” Dean said. “In other cases, we could not confirm criminal background checks were even conducted by Uber.”

Uber said in a statement that it recently discovered a “process error” that was inconsistent with Colorado’s ridesharing regulations and affected what the company called a small number of drivers. It said it notified the state and fixed the problem but did not elaborate.

“Per Uber safety policies and Colorado state regulations, drivers with access to the Uber app must undergo a nationally accredited third party background screening. We will continue to work closely with the CPUC to enable access to safe, reliable transportation options for all Coloradans,” it said.

Uber can pay half of the fine within 10 days, or request a hearing before an administrative law judge to appeal the fine.

Watch Now: Uber Fined $8.9 Million For Drivers With Felonies, DUIs In Colo.

Associated Press contributed to this story.

Image: Uber Headquarters in San Francisco, via Associated Press.