Missouri Attorney General Chris Koster said the founders of car service company U.S. Fidelis willfully committed consumer fraud and other crimes.
Koster said Darain and Cory Atkinson, who were released on a $250,000 bond each Wednesday, had been "systemic, widespread and purposeful" in their actions, which the state says included theft and selling insurance illegally, the St. Louis (Mo.) Post-Dispatch reported Thursday.
The company made quick fortunes for the Atkinson brothers -- fortunes that were quickly lost after the firm went under in 2009 amid accusations of consumer fraud.
In 2010, the brothers forfeited most of their fortunes to settle a bankruptcy lawsuit that claimed they had pilfered $101 million from the company. In the settlement, their wives were permitted to keep $500,000 in cash plus $75,000 worth of household possessions, the newspaper said.
Prosecutors now say the company, which was known for its aggressive telemarketing, withheld refunds from customers, overcharged customers and made false claims during sales pitches.
By selling auto service warranties, the company also sold insurance illegally, as the warranties were contingent on consumers using specific automobile additives.
Michelle Corey, president and chief executive officer of the Better Business Bureau, hailed the arrest of the company founders.
"Finally, there is a sense that those directly responsible for the US Fidelis fiasco are being held accountable," she said.
Facing 14 counts, Darain Atkinson, former president of the company, faces a sentence of up to life in prison because of 1986 convictions for theft, burglary and forgery and a 1987 conviction for counterfeiting federal reserve notes.
Cory Atkinson, who faces 13 counts, could receive up to 15 years in prison. He has a previous conviction on his record on a 1987 charge of felony trespassing.