Car Warranty Scam Tied to Florida Businessmen

By: Associated Press
By: Associated Press

EAST ST. LOUIS, Ill. (AP) - Two executives with a Florida-based telemarketing company have admitted they sold bogus auto-service
warranties in a scheme federal prosecutors say garnered nearly $40
million from 15,000 customers over two years.

Forty-nine-year-old Christopher Cowart, of Fort Lauderdale, Fla., and 45-year-old Cris Sagnelli, of Boca Raton, Fla., pleaded guilty Monday in U.S. District Court to a felony count of using a fictitious name as part of a mail-fraud scheme

Coward was president and Sagnelli vice president of a company called Transcontinental Warranty.

Prosecutors say the company perpetuated the scheme from June 2007 until a federal judge in Chicago ordered it to halt its use of deceptive "robo-calls" warning people their auto warranties were
expiring and offering to sell them new service plans.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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