US Fidelis
11:54 am
Tue September 25, 2012

US Fidelis Co-Founder Gets Eight Years In Prison

The St. Charles County man who once helped run the largest seller of extended auto warranty contracts will spend eight years in federal prison for bilking customers out of millions of dollars.

Darain Atkinson pleaded guilty to conspiracy and tax charges in April. He was sentenced to the maximum of eight years today, and must also pay $4 million in restitution.

Along with his brother Cory, Darain Atkinson owned and operated National Auto Warranty Services, which later became US Fidelis. In his plea, Darain Atkinson admitted that the company use false or misleading advertising to encourage a purchase of a vehicle services contract, and that the company fraudulently withheld refunds from customers who canceled their contracts. He also admitted to using company funds to pay for a lavish lifestyle.

Corey Atkinson was sentenced last week on similar charges to just over four years in prison. Darain Atkinson received a stiffer sentence because of a criminal history. Both brothers are still awaiting sentencing on state charges stemming from the US Fidelis case.

Follow Rachel Lippmann on Twitter: @rlippmann