What Lee said, what Bawb said, what a lot of people said. I will tell you 2 things:
1. The cost of background, drug and motor vehicle checks is MINISCULE in comparison to the $$ and heartache an asshole employee can and will cause you. DO NOT HIRE ANYONE FROM THIS POINT FORWARD WITHOUT ALL 3!
2. Many people are basically dishonest, although they justify their actions and decsions on purely selfish reasons. I assume everyone is a bullshitter until they prove me otherwise. Business is not a place for emotional decisions. Make your decisions based on common sense and not your warm and fuzzy forgiving side. I speak as a reformed warm and fuzzy guy. Set rules, policies. Have a company handbook. Do not let policies be bent or broken without addressing them with the appropriate level of consequence.
While I admire and appreciate the advice of Larry, Ron and others, they are dead wrong. There is a reason this guy has his license suspended. He was dishonest by applying for, accepting and training for a job that he KNEW he wasn't going to be able to perform due to his legal issues. What did he think was going to change? You, that's what. He felt he could do exactly what he has done. Get on your good side and bank on the fact that it's hard to be mean to someone you have a relationship with. He succeeded. Now, pinch yourself and do the right, although tough thing. Look him in the eye and tell him he's done and why. Tell him you'll be happy to give him a reference.