JEFFERSON CITY, Mo. — Missouri Attorney General Chris Koster announced that U.S. Fidelis Co-Founder Darain Atkinson was sentenced to eight years in prison Monday. He pleaded guilty to stealing consumers’ refunds, insurance fraud and consumer fraud in April and reportedly must pay $4 million in restitution.
“In 2009, my office received more complaints about service contract sellers than about any other industry. The industry was plagued by deceptive practices and half-truths,” Koster said in a press release. “My office’s prosecution of the owners of U.S. Fidelis set in motion a dramatic change in that industry — a transformation reflected in the considerable decrease in complaints my office received about service contract sellers last year.
“The criminal prosecutions of Darain and Cory Atkinson should serve as a powerful reminder that my office will not tolerate unfair and deceptive business practices,” he added.
In addition to the criminal charges against the Atkinsons, Koster’s office filed civil lawsuits against auto service contract telemarketers and formed a task force to recommend new requirements in the industry. That task force recommended new legislation, which passed in 2011. Koster said his office has entered into nine settlements with service contract marketers and continues to litigate with five others.
On Sept. 28, Judge Ted House sentenced Cory Atkinson to four years in prison on the state charges against him. Both of the brothers’ sentences will run concurrently with previously set federal sentences.
