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US Fidelis president gets 8-year state prison term

ST. CHARLES, Mo. -- The former president of US Fidelis has been sentenced to eight years in prison on state charges of stealing and fraud.

Darain Atkinson was sentenced Monday in St. Charles. He was sentenced to eight years on federal charges on Sept 25, and the terms will be served concurrently.

The 47-year-old co-founded the auto service contract seller with his 42-year-old brother, Cory Atkinson. The younger Atkinson is sentenced to four years on state charges and 40 months on federal charges, also to be served concurrently.

The Wentzville, Mo.-based US Fidelis collapsed in 2009 and filed for bankruptcy in 2010 amid accusations of fraud. Prosecutors say the company misled customers about warranty coverage and fraudulently withheld refunds.

They say the brothers used company funds to live lavish lifestyles.