DALLAS – A former corporate accountant for Collin Street Bakery was sentenced to 10 years in prison Wednesday for embezzling $16.7 million from the popular Corsicana-based bakery to fund a lavish lifestyle for he and his wife.
Sandy Jenkins, 66, was taken into custody on a federal criminal complaint in August 2013, about three weeks after the FBI initially raided the home and seized luxury cars and boxes of documents. He pleaded guilty to one count of mail fraud, one count of conspiracy to commit money laundering, and one count of making a false statement to a financial institution in May 2014. He was sentenced 10 years in federal prison for the crimes, which occurred from 2004 to 2013.
His wife, Kay Jenkins, 64, pleaded guilty to one count of conspiracy to commit money laundering in May 2015. She was sentenced to five years probation for her role in the crime. She will be forced to write a letter of apology to the bakery, as well as perform 100 hours of community service as terms of her sentence.
According to federal authorities, Sandy Jenkins caused Collin Street Bakery checks to be written to his personal creditors and then manipulated Collin Street Bakery s computerized accounting system to show that the checks had been voided.
According to a release from the U.S. Attorney's Office for Texas' northern district, the prosecution said the Jenkins took 223 trips on private jets from 2004 until the embezzlement was discovered in 2013 at a total cost exceeding $3.3 million. Additionally, the government found the Jenkins spent more than $11 million on an American Express black card alone — which comes out to roughly $98,000 per month over the course of the scheme — and $1.2 million at the Neiman Marcus store in Dallas' Northpark Center.
The government also showed the Jenkins purchased 38 vehicles in that same time period, including many luxury models.
"According to evidence proffered at sentencing, Sandy Jenkins and Kay Jenkins purchased a new automobile every time they needed an oil change," a release from the U.S. Attorney's Office said.
Seized assets and cash totaling nearly $4 million will be turned over to Collin Street Bakery to be sold off.
Sandy Jenkins emotionally addressed the bakery's staff and owners in the courtroom, saying "I betrayed you. I'm terribly sorry."
His attorney, Brett Stalcup, called the case "crazy" but said his client was apologetic, and got into a situation where he couldn't stop.
More than a dozen bakery employees, along with members of the controlling McNutt family, attended the hearing.
Bob McNutt told the judge the case has been "devastating" for all involved.
Collin Street Bakery is known for its fruitcakes and cookies, which it ships around the world.
