New documentary recounts the Collin Street Bakery fraud scandal

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Credit: KXAS

CORSICANA, Texas (KETK) — A new documentary was released on Wednesday that details the story of the massive fraud scandal that occurred at a world-famous Texas bakery. The film can be seen on Discovery Channel’s streaming service, Discovery Plus.

Collin Street Bakery has been in business in Texas for more than 125 years and is widely known for its famous fruitcakes. However, the new documentary Fruitcake Fraud explores the story of the executive who, with his wife, embezzled more than $16 million from the bakery over the course of nearly a decade.

Sandy Jenkins began his work for the bakery as the Corporate Controller in February of 1998 and continued his role for more than a decade until he was terminated from his role on June 21, 2013. That was the day that the bakery discovered Sandy’s embezzlement scheme and summarily terminated him from employment.

Sandy Jenkins and his wife, Kay, were both charged, and eventually convicted, for crimes related to their fraud scheme. Sandy was sentenced to 120 months in federal prison after he pleaded guilty in May 2014 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. Kay was sentenced to five years probation and 100 hours of community service in May 2015 after she pleaded guilty to one count of conspiracy to commit money laundering.

According to documents filed in the case against the Jenkinses, dating back to as early as December 2004 and continuing until the day he was fired, Sandy embezzled more than $16 million from the bakery. The documents indicate that Sandy and Kay used the money to subsidize an extremely lavish lifestyle.

Assistant U.S. Attorney J. Nicholas Bunch introduced evidence during the sentencing phase of the trial showing that the couple took more than 223 trips on private jets to numerous locations, including Santa Fe, New Mexico; Aspen, Colorado; and Napa, California, among other places, with a total cost that exceeded $3.3 million.

The Federal Bureau of Investigation detailed the extent of the embezzlement scheme as follows:

“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. According to evidence proffered at sentencing, Sandy Jenkins and Kay Jenkins purchased a new automobile every time they needed an oil change. 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. The government further proffered evidence at sentencing that the Jenkins stopped shopping at Neiman Marcus when Neiman’s ran out of things to sell them.

Based on the evidence at sentencing, the Court determined that the total loss as a result of Sandy Jenkins’s offense was $16,766,645.70. Through the efforts of law enforcement in this case, the government recovered approximately $4,000,000 in property and cash that will be turned over to the Bakery as partial restitution for the losses suffered in this case. That includes the following: (a) four vehicles, including a 2005 Lexus SC, a 2010 Mercedes Benz CL550, a 2013 GMC Yukon Denali, and a 2013 BMW X53 (having an approximate value of $150,000); (b) 532 luxury items, including 41 bracelets, 15 pairs of cufflinks, 21 pairs of earrings, 16 furs, 61 handbags, 45 necklaces, 9 sets of pearls, 55 rings, and 98 watches (having an approximate value of $3.5 million); $580,754.90 in cash; a wine collection (having an approximate value of $50,000.00); and a Steinway electronic piano (having a value of $58,500.00). As a result of the turnover of property, the Court ordered restitution jointly and severally for Sandy and Kay Jenkins in the amount of $12,697,921.79 to be paid to the Bakery.”

According to our NBC affiliate station in Dallas, NBC 5, the Fruitcake Fraud documentary contains interviews with prominent figures that were at the center of the case against Sandy and Kay Jenkins, including Collin Street Bakery CEO and President Bob McNutt, Semetric Walker, the woman who discovered the scheme, Hayden Crawford, Vice-President of Public Relations and Customer Service and partner at the bakery and many others.

Copyright 2022 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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