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Darain Atkinson (US Fidelis) Charges Document 3-5-2012

Darain Atkinson (US Fidelis) Charges Document 3-5-2012

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Published by: St. Louis Public Radio on Apr 05, 2012
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04/05/2012

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IN THE ELEVENTH JUDICIAL CIRCUIT, STATE OF MISSOURI CIRCUIT JUDGE DIVISION STATE OF MISSOURI, Plaintiff, v. DARAIN E.

ATKINSON, Defendant
) ) ) ) ) ) ) ) )

Case No. 1111·CR·03068

INFORMATION IN LIEU OF INDICTMENT

Stealing without Consent - Class B Felony Mo. Charge Code: 1501899.0 The Attorney General of Missouri and Prosecuting Attorney of the County of St. Charles, State of Missouri, charge that the Defendant Darain E. Atkinson, in violation of Section 570.030 RSMo, committed the class B felony of stealing, punishable upon conviction under Section 558.011 RSMo, in that from on or about January 3,2005, to on or about May 3,2009, in the County of St. Charles, State of Missouri, Defendant, acting in concert with Cory Atkinson, a company named US Fidelis, Inc. f/k/a National Auto Warranty Services, Inc. d/b/a Dealer Services, a corporation, and others, appropriated monies in the form of all or part of refunds due consumers, known and unknown, who purchased vehicle repair coverage under motor
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COUNT I

vehicle extended service contracts, of a value of at least twenty-five thousand dollars, which property was owned or provided by such persons, and Defendant and others appropriated such property without the consent of such

persons and with the purpose to deprive them, thereof. COUNT II Insurance Fraud - Unclassified Felony Mo. Charge Code: 1977399.0 The Attorney General of Missouri and Prosecuting Attorney of the County of St. Charles, State of Missouri, charge that Defendant Darain E. Atkinson, in violation of Section 375.144 RSMo, committed the unclassified felony of insurance fraud, punishable upon conviction under Section 375.146

RSMo, in that from on or about August 28,2005, to on or about May 3,2009, in the County of St. Charles, State of Missouri, Defendant, acting in concert

with Cory Atkinson, a company named US Fidelis, Inc. f/k/a National Auto Warranty Services, Inc. d/b/a Dealer Services, a corporation, and others, in of insurance, to

connection with the offer, sale, solicitation and negotiation

wit: vehicle repair coverage under contracts associated with Auto Life Xtend, Carmor and other vehicle products, knowingly and with the purpose to defraud employed deception, devices, schemes and artifices to defraud, made and used misrepresentation, concealment and suppression
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of material facts,

and engaged in acts, practices, and courses of business which operated as a fraud and deceit upon prospective purchasers, all by: A. Creating mailings and making statements over the telephone that were designed to create the impression that the prospective purchaser was communicating with someone associated with automobile manufacturers and dealerships; B. Concealing, suppressing and omitting, in mailings and over the telephone, the material fact that US Fidelis, Inc. f/k/a National Auto Warranty Services, Inc. had no association with automobile manufacturers and dealerships;

C. Making statements over the telephone that the engine, transmission, air conditioner and other parts were covered under the contract, which statements were false, because purchasers' claims for such repair were often denied due to the numerous exclusions and limits that were not stated to purchasers over the telephone, but were contained in the contract; D. Making statements over the telephone that were designed to create the impression with prospective purchasers that more vehicle repairs were covered than were actually covered under the terms of

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the written contract; E. Concealing, suppressing and omitting, in mailings and over the telephone, the material fact that the vehicle repair coverage sold by US Fidelis, Inc. f/k/a National Auto Warranty Services, Inc. contained liability limits, and other conditions and exclusions from coverage; F. Making statements over the telephone, in written contracts, and on the product label that were designed to create the impression that one treatment of the product would reduce engine wear and improve

engine performance over the term of the coverage; G. Concealing, suppressing and omitting, in mailings and over the telephone, the material fact that the contracts were, in fact, associated with vehicle products and the performance of the products had no relationship to the coverage under the contract; and H. Offered, solicited, negotiated and sold insurance in the form of vehicle repair coverage under contracts associated with Auto Life Xtend, Carmor and other vehicle products at a time when neither the contract provider, Crescent Manufacturing, LLC, nor the representatives of US Fidelis or National Auto Warranty Services,

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Inc., were authorized under a certificate of authority or licensure to transact insurance business in Missouri.

COUNT III Unlawful Merchandising Practices - Class D Felony Mo. Charge Code: 1904599.0 The Attorney General of Missouri and Prosecuting Attorney of the County of St. Charles, State of Missouri, charge that Defendant Darain E. Atkinson, in violation of Section 407.020.1 and 407.020.3, RSMo, committed the class D felony of unlawful merchandising practices, punishable upon conviction under Sections 558.011 and 560.011 RSMo, in that from on or about January 3, 2005, to on or about May 3, 2009, in the County of St. Charles, State of Missouri, Defendant, acting in concert with Cory Atkinson, a company named US Fidelis, Inc. f/k/a National Auto Warranty Services, Inc. d/b/a Dealer Services, a corporation, and others, in connection with the sale of merchandise, to wit: vehicle repair coverage under motor vehicle extended service contracts and contracts associated with Auto Life Xtend, Carmor and other vehicle products, in trade and commerce, willfully, knowingly, and with the intent to defraud used and employed acts and practices of deception, fraud, false pretense, false promise, misrepresentation, and concealment, suppression and omission of material facts, all by:
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A. Creating mailings and making statements over the telephone that were designed to create the impression that the prospective purchaser was communicating with someone associated with automobile manufacturers and dealerships; B. Concealing, suppressing and omitting, in mailings and over the telephone, the material fact that US Fidelis, Inc. f/k/a National Auto Warranty Services, Inc. had no association with automobile manufacturers and dealerships;

C. Making statements over the telephone that the engine, transmission, air conditioner and other parts were covered under the contract associated with Auto Life Xtend, Carmor and other vehicle products, which statements were false, because purchasers' claims for such repair were often denied due to the numerous exclusions and limits that were not stated to purchasers over the telephone, but were contained in the contract; D. Making statements over the telephone that were designed to create the impression with prospective purchasers that more vehicle repairs were covered than were actually covered under the terms of the written contract;

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E. Concealing, suppressing and omitting, in mailings and over the telephone, the material fact that the vehicle repair coverage sold by US Fidelis, Inc. f/k/a National Auto Warranty Services, Inc. contained liability limits, and other conditions and exclusions from coverage; F. Making statements over the telephone, in written contracts, and on the product label that were designed to create the impression that one treatment of the product would reduce engine wear and improve engine performance over the term of the coverage; and G. Concealing, suppressing and omitting, in mailings and over the telephone, the material fact that such contracts were, in fact, associated with vehicle products and the performance of the products had no relationship to the coverage under the contract. Respectfully submitted, CHRIS KOSTER Attorney General

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,t::J ~ ~"'~
Douglas M. Ommen Missouri Bar No. 35301 Assistant Attorney General

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Cheryl Ann Schuetze Missouri Bar No. 53736 Assistant Attorney General PO Box 899 Jefferson City MO 65102 (573) 751-7007 Fax: (573) 751-2041 Special Prosecuting Attorneys

CERTIFICATE OF SERVICE
I hereby certify that a copy of the foregoing was hand-delivered on this 5th day of April, 2012, to: GIlbert Sison Rosenblum, Schwartz, Rogers & Glass, P.C. 120 South Central Avenue, Suite 130 St. Louis, MO 63105 Attorney for Defendant Darain E. Atkinson

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Assistant Attorney General

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