Embezzler and Wife Bought a New Car Every Time They Needed an Oil Change

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A fruitcake executive was sentenced Wednesday to 10 years in federal prison for embezzling $16.7 million, some of which he and his wife spent at Neiman Marcus until the store ran out of things to sell them.

Sandy Jenkins, 64, of Corsicana, was sentenced by U.S. District Judge Ed Kinkeade.

Jenkins' wife, Kay, 64, was sentenced to 5 years probation and 100 hours of community service and ordered to write an apology to the bakery.
They were ordered to pay $12.7 million in restitution.
Prosecutors said Jenkins ran "a massive scheme to defraud" the bakery from December 2004 until he was fired in June 2013.
"During that time, he embezzled more than $16 million from the bakery, and he and his wife, Kay Jenkins, used that money to bankroll a lavish lifestyle," prosecutors said Wednesday. "The government introduced evidence at sentencing identifying the 223 trips on private jets as well as the locations (primarily Santa Fe, New Mexico; Aspen, Colorado; and Napa, California, among other places), with a total cost that exceeded $3.3 million. The government also showed at sentencing that the Jenkins purchased 38 vehicles over the course of the scheme, including many Lexus automobiles, a Mercedes Benz, a Bentley, and a Porsche."
The couple bought a new car every time they needed an oil change, prosecutors said.
Jenkins pleaded guilty in May to mail fraud, conspiracy to commit money laundering and making a false statement to a financial institution.
He worked as corporate controller for the Collin Street Bakery in Corsicana from 1998 until he was fired in June 2013 when the fraud was discovered. As part of his plea, Jenkins agreed to pay full restitution. His wife pleaded guilty in May to conspiracy to commit money laundering.
In addition to their 38 cars and 223 jet flights, prosecutors said: "The government further established at sentencing that the Jenkins spent over $11 million on a Black American Express card alone - roughly $98,000 per month over the course of the scheme - for a couple that had a legitimate income, through the bakery, of approximately $50,000 per year. The evidence at sentencing also established that a significant portion of stolen funds (approximately $1.2 million) were spent at Neiman Marcus at Northpark in Dallas where Sandy Jenkins and Kay Jenkins had nicknames, 'Fruitcake' and 'Cupcake,' respectively."
Prosecutors said at sentencing that the couple stopped shopping at Neiman Marcus after the store "ran out of things to sell" them.
Law enforcement was able to recover $4 million in property and cash for restitution, including four luxury cars, 41 bracelets, 15 pairs of cufflinks, 21 pairs of earrings, 16 furs, 61 handbags, 45 necklaces, 9 sets of pearls, 55 rings, 98 watches, a wine collection and a Steinway electronic piano.
Collin Street Bakery could not be reached for comment Wednesday evening.
Founded in 1896 by German immigrants, the bakery began its mail order business when members of Ringling Bros. and Barnum & Bailey Circus asked for its cakes to be sent to family and friends in Europe. The bakery ships its fruitcakes and pecan cakes to 196 foreign countries, according to its website.

This article originally appeared on Courthouse News Service

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