Mo. AG objects to US Fidelis bankruptcy plan

AP News
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Posted: Oct 19, 2010 12:20 PM
Mo. AG objects to US Fidelis bankruptcy plan

Missouri's attorney general is challenging a proposed settlement in the St. Louis bankruptcy case of a company that claimed to be the nation's top marketer of auto-service contracts.

The St. Louis Post-Dispatch reports that Attorney General Chris Koster filed an objection Friday arguing that the wives of US Fidelis owners Darain and Cory Atkinson would get to keep too much money. Koster also says the settlement would shield the brothers from further lawsuits.

US Fidelis filed for bankruptcy in March beneath a cloud of accusations that it used illegal telemarketing ploys and sold worthless warranties. Bankruptcy documents suggest the Atkinson brothers used company money to maintain lavish lifestyles.

No criminal charges have been filed.

A hearing on the settlement matter is scheduled for Wednesday.

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Information from: St. Louis Post-Dispatch, http://www.stltoday.com