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Repair Tech / Reneged on extended warranty

1 FL, United States

A little over 1 year ago, I purchased a SONY digital camera from Foto Connection of Brooklyn, NY. The order was for about $1, 600.00. They recommended a 5-year extended warranty by RepairTech and I purchased it for $300.00
Now, the camera malfunctioned and I tried contacting RepairTech. An answering machine message indicated that, as of June 1, 2008, all prior warranties would not be honored.
Foto Connection, who sold me the warranty, appeared aware of the problem and advised suing RepairTech in small claims court, at the same time suggesting that RepairTech was no longer in business.
Both companies appear complicit in fraud. I am angry because I was "taken".
Any advice?

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