KRDO13 Investigates: Fraud investigation at Colorado Springs driving school leads to security changes statewide, no criminal charges yet

COLORADO SPRINGS, Colo. (KRDO) - The Colorado DMV says it is implementing new statewide security measures after investigators uncovered what the agency describes as “widespread, systemic fraud” tied to a Colorado Springs driving school.

KRDO13 Investigates learned this after asking state and federal agencies about pending criminal charges. The Colorado Attorney General’s Office and the U.S. Attorney’s Office declined to comment on whether any criminal investigation or charges are being pursued, even though the state DMV said 40 people willingly participated in the fraud.

The investigation led to the immediate suspension of Academy School of Driving (ASD), a third-party testing school previously certified by the state to provide driver education and administer written and driving tests.

According to the Colorado DMV, investigators uncovered alleged fraud involving shortened driving tests, manipulated written exams, falsified state records, and the use of fake identities to reserve DMV appointments.

Now, the agency says the case is forcing changes to how Colorado monitors testing activity and appointment scheduling statewide.

"The Colorado Springs driver license office noticed an unusual number of ASD students had failed a written test in office, then returned the same day with a passing score from ASD, and then returned having passed the driving test within the same day or within 24 hours," DMV Communications Specialist Corinne Willer told KRDO13 Investigates.

Willer said the suspicious pattern was flagged internally by DMV employees and escalated to leadership, ultimately triggering the investigation.

According to the DMV, the state is now:

• Improving data-monitoring systems to detect suspicious testing patterns earlier
• Training driver's license offices statewide to identify similar activity
• Adding two-factor authentication to the DMV appointment system, requiring verification through email or text message

The DMV says investigators also identified suspicious behavior involving the state’s appointment system.

On the DMV’s public information page about the investigation, the agency alleges that so-called "coordinators" used fake names to hoard DMV appointments and then sold those slots to customers.

The DMV also alleges:

• Written test fraud where coordinators physically marked answers for applicants
• Required 15-minute road tests, allegedly shortened to as little as 2 to 4 minutes
• Applicants allegedly charged between $550 and $600 for “guaranteed” results

The state says the alleged fraudulent activity dates back to at least March 2025.

According to documents obtained by KRDO13 Investigates through the Colorado Open Records Act, state auditors observed multiple allegedly improper driving tests that lasted only minutes while records submitted to the state claimed the tests lasted approximately 15 minutes and followed approved routes.

Other records released by the DMV allege an auditor witnessed a tester physically filling in correct answers on a written exam after an applicant answered questions incorrectly.

The suspension order also alleges ASD repeatedly failed to correct deficiencies identified during audits dating back years.

The DMV says it reviewed nearly 5,000 ASD customers who completed written and driving tests between March 2025 and March 2026.

According to updated figures provided by the DMV, approximately 451 individuals are currently believed to be impacted:

• Approximately 411 are believed to have received credentials due to fraudulent testing
• Approximately 40 are believed to have knowingly participated in the fraudulent testing process

The DMV says impacted drivers were mailed letters beginning the week of April 20 informing them whether:

• Their license was immediately canceled
• or whether they must retake the written and driving tests within 60 days to avoid cancellation

State officials say customers under 18 are not believed to be impacted by the investigation.

The DMV says customers who paid ASD for services they never received may attempt to seek refunds directly from the company, dispute charges through their financial institution, or file complaints with the Colorado Attorney General’s Office.

However, when contacted by KRDO13 Investigates, the DMV acknowledged ASD’s website still appeared operational even after the suspension and said the state is "seeking to have the site deactivated."

KRDO13 Investigates also attempted to contact ASD owner Matt Theobald through phone numbers associated with the business and by visiting the company in person, but has not received a response.

The DMV says customers struggling with issues related to the ASD closure can contact the agency’s Driver Testing and Education team at DOR_ASDfraudhelp@state.co.us.

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