Cory Atkinson, co-owner and operator of auto services company US Fidelis, pled guilty yesterday to misleading consumers in connection with extended automobile service contracts sold by US Fidelis from its headquarters in St. Charles County, according to Missouri Attorney General Chris Koster. Cory Atkinson faces four years in prison.
The plea admits violations of the law similar to those to which his brother, Darain Atkinson, pleaded on April 5, 2012. These violations include:
- leading consumers to believe that more vehicle repairs were covered than the contracts actually provided;
- using deceptive practices to flout state laws related to insurance or service contracts;
- leading consumers to believe the company was affiliated with auto manufacturers and dealers when it was not.
Koster said that in exchange for Atkinson’s guilty pleas on the three counts, Atkinson faces a sentence of four years on Count 1 – Insurance Fraud; four years on Count II – Consumer Fraud; and four years on Count III – stealing consumers’ money by lying about the amount of vehicle repair coverage under the additive scam.
A St. Charles County grand jury handed down a 13-count indictment against Cory Atkinson and a 14-count indictment against his brother, Darain Atkinson, in June 2011. On April 27, 2012, the State filed two additional counts against Cory Atkinson. Under the plea agreement signed by Cory Atkinson, the counts were collapsed into the three charges. Sentencing is set for September 28, 2012.
The sentencing for Darain Atkinson is scheduled for July 16, 2012 at 11:00 a.m. The Attorney General’s Office worked in coordination with United States Attorney Richard Callahan, and St. Charles Prosecuting Attorney Jack Banas in these cases.
—This article is a press release issued from a wire, corporate or government source. In some cases, Missouri Business Alert will contribute additional reporting.