Former Leader of US Fidelis Gets Eight Years

ST. LOUIS (CN) - A man who co-founded the one-time leader in auto service contract sales was sentenced to eight years in federal prison for fraud.

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Darain Atkinson, 47, of St. Louis, founded National Auto Warranty Services with his brother Cory. National Auto Warranty, which later became US Fidelis, collapsed in 2009 amid allegations of widespread fraud.

The Atkinsons were accused of defrauding customers and the Internal Revenue Service by $100 million to fund their lavish lifestyles.

Darain Atkinson pleaded guilty to federal and state charges in April, and Cory Atkinson, 42, pleaded guilty to similar charges in June. Darain Atkinson will serve twice as long in prison as his brother, who was sentenced Sept. 18, because he controlled the company and is a previous offender.

The St. Louis Post-Dispatch reported that Darain's criminal history includes convictions for burglary and forgery.

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