Coloradans lured by promise of free e-bike left with questions about delays, safety and more

Getting a free e-bike sounds like a great deal. But for some Colorado families, that promise has led to months of waiting, unanswered questions and now concerns about safety.

Mikki Marshall signed up with COE Bikes after hearing about the company's offer of free e-bikes through Colorado's e-bike tax credit program. He said someone from the company said to him "It's a free bike. You just have to be a Colorado resident."

Under the program, participating retailers provide a discount upfront and later receive a state tax credit. The credit was $500 last year and is now $250.

After months of waiting, Marshall said she was finally told a bike was available.

"She asked us to leave a review, so everybody knows it's not fraud and we are real," Marshall said.

Despite the delays she faced, Marshall encouraged family members to sign up as well.

But eventually, she said communication stopped.

"When I went back there was nobody there anymore," Marshall said.

CBS Colorado found the company's former warehouse location empty.

Last summer, CBS Colorado tracked down owner Takuma Hagood after customers complained they could no longer reach the company.

At the time, Hagood promised customers would eventually receive bikes but acknowledged the business had not properly registered with the Colorado Department of Revenue to receive the tax credit.

"We technically weren't approved to get the credit at the time," Hagood said in a recorded message provided to CBS Colorado.

CBS Colorado continued speaking with Hagood for months as he worked to continue the program. Instead of offering free bikes, customers would need to pay sales tax.

Since then, the company has rebranded as Bear Trail Bikes while continuing to promote similar offers, collecting only sales tax and maintaining there is no catch.

"This is not a scam," a company representative said in a social media video.

One Denver father, who asked not to be identified, said he finally received a bike from Bear Trail Bikes in May after waiting nearly a year.

But he said it was not the bike he originally ordered.

"We opened up the box and there were absolutely no instructions," he said.

The bike he received was an Ursus Cub.

CBS Colorado could find no information on the Ursus website about where the bikes are manufactured and found no record of the company being registered in Colorado. The website lists only three retailers carrying the bikes: COE Bikes, Bear Trail Bikes and Big Easy Bikes in New Orleans, another Bear Trail Bikes-affiliated business.

The father said the bike's charger immediately raised concerns.

"I thought the power cord looked really weird," he said. "I've been a little bit uneasy about charging it, especially within the house. I haven't charged it yet," he said.

In a statement to CBS Colorado, a spokesperson for the Colorado Energy Office said e-bikes must be certified to UL standards and display that certification in order to qualify for the state's rebate program.

Rob Slone, chief scientist for UL Solutions, said certification requires extensive testing.

"For a bike to earn the UL mark, our mark, it would have to come through a UL Solutions laboratory. We know how we test and how rigorous we are with those bikes and what they have to do to earn that mark," Slone said.

The Ursus Cub reviewed by CBS Colorado did not display a UL certification mark or any other certification label.

When CBS Colorado asked Hagood about those concerns, he said the bikes are not UL-certified but are certified to UL standards, which he said is noted on the packaging.

The state has taken notice as well. In an email to consumers, officials are now warning that some bikes delivered by Bear Trail Bikes in recent months could be hazardous to ride or charge.

The website of Bear Trail Bikes says they are now pausing sales. Hagood maintains that bike deliveries are being held up because of the state not issuing payments in a timely manner.

The Colorado Energy Office as well as the Colorado Department of Revenue says retailers don't see the credit until after delivery of bikes that meet state safety regulations.

Information they say is verified through Department of Revenue audits and tax privacy laws prevent them from telling CBS Colorado how much money has gone to Bear Trail Bikes.