Insurers like to complain about fraud by policyholders, but here’s the story of gross fraud perpetrated by a nationally prominent insurance company issuing automobile warranty policies. The entity – U.S. Fidelis – was run by previously convicted felons, and marketed itself as a "faith based" business. Key excerpts are as follows:
"The former president of US Fidelis, once one of the nation’s largest sellers of auto service contracts, admitted in court here Thursday that he bilked consumers and looted his own company of millions of dollars.
Darain Atkinson pleaded guilty to state charges of insurance fraud, stealing and unlawful merchandising practices. It was part of a deal negotiated without the knowledge of his co-defendant and brother, Cory Atkinson, the latter’s lawyers said.
After that agreement in St. Charles County Circuit Court was announced, federal prosecutors in St. Louis unsealed an indictment accusing both men of defrauding consumers, failing to pay taxes and using more than $71 million from the company to fund a lavish lifestyle of luxury boats, cars and mansions here and overseas.
YouTube includes an example of its advertsing. YouTube also has a devastating story on the business, including that the Better Business Bureau had 1,100 complaints. One of the owners was in the process of building a $ 17 million mansion, according to the video.