ST. CHARLES, Mo. (CN) – The former co-owner of US Fidelis – once the country’s largest seller of auto service contracts – pleaded guilty to state charges of defrauding customers and sacking the company for millions of dollars.
Cory Atkinson, 42, the former vice-president of US Fidelis, pleaded guilty to insurance fraud, consumer fraud and stealing by deceit, Missouri Attorney General Chris Koster said in a statement.
Atkinson’s brother, Darain Atkinson, 47, pleaded guilty to similar charges in April.
Together the Atkinsons owned US Fidelis, which collapsed in 2009 amid allegations of widespread fraud.
The brothers allegedly took $100 million from the company to fund a luxurious lifestyle that included multimillion-dollar homes in St. Charles County, Lake Tahoe and the Cayman Islands and luxury boats and vehicles.
Cory Atkinson pleaded guilty last week in St. Charles County Court. He was expected to plead guilty to similar, federal charges, today (Monday).
His attorney told the St. Louis Post-Dispatch that Atkinson is expected to be sentenced to no more than 4 years in prison on both the state and federal charges. His sentencing is set for Sept. 28.
Darain Atkinson is expected to be sentenced to 8 years in prison on July 16, the Post-Dispatch reported.