A former co-owner of one of the country’s top marketers of auto service contracts has pleaded guilty in Missouri to theft and fraud.
Darain Atkinson founded St. Charles-based US Fidelis with his brother, Cory Atkinson. Missouri Attorney General Chris Koster says Darain Atkinson pleaded guilty to one count each of consumer fraud, insurance fraud and stealing consumer refunds.
Sentencing in St. Charles County Circuit Court is scheduled for July 16. Prosecutors are recommending a sentence of eight years.
A grand jury in St. Charles County last year indicted Darain Atkinson on 14 counts and his brother on 13 counts. Cory Atkinson faces trial Sept. 4.
US Fidelis was headquartered in Wentzville, Mo., a suburb of St. Louis. US Fidelis sold motor vehicle extended service contracts, sometimes called auto extended warranties, which are regulated by the Department of Insurance. In addition to extended service contracts, US Fidelis sold additive product contracts.
The company filed for bankruptcy in March 2010 amid accusations it used illegal telemarketing ploys and sold worthless warranties.
Lawsuits were filed in several states over alleged fraudulent activity associated with US. Fidelis.
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