US Fidelis bankruptcy doesn't stop owners' lavish lifestyles

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KMOV.com

Posted on March 2, 2010 at 10:15 PM

Updated Tuesday, Mar 2 at 10:23 PM

(KMOV) -- While news of the US Fidelis bankruptcy has left hundreds of people jobless, the company's founders appear to still lead a lavish lifestyle.

More than 400 pages of court documents on the Wentzville-based auto warranty company give an inside glimpse of how company founders Darain and Cory Atkinson ran the company up until its demise.

Bankruptcy court filings show that Darain Atkinson still lives in a $17 million mansion in Lake St. Louis. Property records indicate that the home is more than 20,000 square feet, with nine bedrooms and 12 bathrooms.

Records also show that the company has $74 million in assets. That's compared to only $25 million in debts. The same records reveal that Darain Atkinson loaned himself more than $28 million out of company funds, and loaned his brother Cory more than $20 million. More than $14 million went to Atkinson realty.

The company also owns more than $100,000 worth of go-karts, all of which are missing as of Tuesday night.

US Fidelis has many financial demands to satisfy; it owes millions of dollars to its creditors, and its customers want refunds. John Ashcroft's law firm has lost more than $668,000 and Rusty Wallace Racing is owed more than $500,000.

The company also owed more than $91,000 in property taxes to St. Charles County.

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