Attorney General's News Release

April 5, 2012

Attorney General Koster announces guilty plea by Darain Atkinson -- Co-owner of US Fidelis pleads guilty to felony stealing, insurance fraud and consumer violations; faces possible eight years in prison --

Jefferson City, Mo. -– Attorney General Chris Koster announced that Darain Atkinson, one of the brothers who owned and operated US Fidelis, pleaded guilty today to misleading consumers in the St. Louis area and nationally regarding extended automobile service contracts sold by US Fidelis from its headquarters in St. Charles County. Atkinson faces eight years in prison.

The plea outlines numerous violations of the law by Darain Atkinson, including:

• keeping refunds owed to consumers;
• leading consumers to believe that more vehicle repairs were covered than the contracts actually covered;
• using deceptive practices intentionally designed to avoid state laws related to insurance or service contracts.
• leading consumers to believe the company was affiliated with auto manufacturers and dealers when they were not.

Koster said that in exchange for Atkinson’s guilty pleas on the three counts, Atkinson faces a sentence of eight years on Count 1 – stealing consumers’ refunds; eight years on Count II – Insurance Fraud; and four years on Count III – Consumer Fraud.

A St. Charles County grand jury last June handed down a 14-count indictment against Darain Atkinson and a 13-count indictment against his brother Cory Atkinson. Under the plea agreement signed by Darain Atkinson, the counts were collapsed into the three charges. Sentencing date is set for July 16 at 1:30 p.m.

Cory Atkinson’s trial is scheduled for September 4.

The Attorney General’s Office worked in coordination with United States Attorney Richard Callahan and his staff, and St. Charles Prosecuting Attorney Jack Banas in the case.