Grand Jury Indicts Wife Of Former Executive At Collin Street Bakery On Conspiracy, Money Laundering And False Statement Felony Offenses
Defendant Sandy Jenkins Allegedly Embezzled More than $16 Million from Corsicana Business, Which Sandy and Kay Jenkins Used on a Lavish Lifestyle
DALLAS — A federal grand jury returned a 22-count superseding indictment today charging Sandy Jenkins, 65, and his wife, Kay Jenkins, 63, both of Corsicana, Texas, with various felony offenses stemming from Sandy Jenkins’s alleged embezzlement of approximately $16 million from his former employer, the Collin Street Bakery (Bakery) in Corsicana, which was used by Sandy and Kay Jenkins to maintain an extensive and lavish lifestyle. This indictment supersedes a 10-count indictment, returned in September 2013 that charged Sandy Jenkins with 10 counts of mail fraud stemming from the alleged embezzlement. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made today’s announcement.
Jenkins served as the Corporate Controller for the Bakery from February 1998 to June 21, 2013. On June 21, 2013, Jenkins was terminated after the Bakery discovered the alleged fraud. He has been in custody since his arrest in August 2013 on related charges outlined in a criminal complaint. Kay Jenkins is expected to self-surrender and make her initial appearance on Tuesday, March 18, 2014. Sandy Jenkins will appear in court at date to be determined.
This superseding indictment charges Sandy Jenkins with 10 counts of mail fraud and three counts of money laundering. In addition, Sandy and Kay Jenkins are also each charged with one count of conspiracy to commit money laundering; six counts of money laundering and aiding and abetting; and two counts of making a false statement to a financial institution.
This indictment alleges that from December 2004 until June 21, 2013, Sandy Jenkins schemed to embezzle funds from the bakery for his and Kay’s self-enrichment. Between 2005 and 2013, Sandy Jenkins allegedly caused approximately 888 fraudulent checks to be written on the Bakery’s account and mailed to his personal creditors, resulting in losses to the Bakery of approximately $16,649,786.
Starting in at least December 2004 and continuing through approximately August 12, 2013, Sandy and Kay Jenkins conspired together to maintain an extensive and lavish lifestyle through expenditures of the money embezzled from the Bakery. During this time, Sandy and Kay Jenkins maintained a vacation home in Santa Fe, New Mexico, a multi-million dollar watch and jewelry collection, luxury automobiles, and took numerous trips on private jets, among other things, funded with money Sandy Jenkins stole from the Bakery.
During that time, Sandy and Key Jenkins incurred more than $11 million in charges on American Express credit cards, which were subsequently paid with monies embezzled from the Bakery. Those charges included, among other things, approximately $3.3 million in payments for approximately 223 trips on private jets contracted through North Dallas Aviation to various locations including Santa Fe; Napa, California; and Aspen, Colorado. The Jenkins also used funds Sandy Jenkins embezzled to deposit into their joint bank accounts, purchase a 2010 Mercedes-Benz, a 2013 GMC Yukon Denali, and a $25,000 men’s Patek Philippe 18 karat rose gold watch.
The indictment further alleges that Sandy and Kay Jenkins knowingly made false statements, i.e., overstating their monthly income, to financial institutions in connection with their applications for a mortgage loan to purchase a residence in Santa Fe.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalties, per count, are: mail fraud – 20 years in federal prison and a $250,000 fine; conspiracy to commit money laundering and money laundering – 10 years in federal prison and a $250,000 fine, or alternatively, not more than twice the amount of the criminally derived property involved in the transaction; and making false statements to a financial institution – 30 years in federal prison and a $1 million fine.
The indictment also includes a forfeiture allegation that would require Sandy and Kay Jenkins to forfeit not only the total proceeds derived from the offense ($16,649,786), but also property including: real estate in Corsicana and Santa Fe; vehicles, including a Mercedes, a Lexus, a GMC Denali and a BMW; more than $440,000 in currency seized or surrendered to date; one Steinway piano; electronic equipment; six firearms; furs, jewelry, precious gems and metals, watches, handbags, luggage, shoes, crystal and miscellaneous collectables; a wine and liquor collection; artwork seized from the residence in Santa Fe; and two watches seized from deBoulle Diamond & Jewelry, Inc.
The FBI is conducting the investigation. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution and Assistant U.S. Attorney Melissa Childs is handling the forfeiture.