Former Corporate Controller for Collin Street Bakery Arrested and Detained on Mail Fraud Charge
|U.S. Attorney’s Office August 13, 2013|
DALLAS—Sandy Jenkins, 64, of Corsicana, Texas, was arrested by special agents of the FBI yesterday afternoon on a federal criminal complaint charging mail fraud. Jenkins appeared before a magistrate judge this afternoon where he waived preliminary and detention hearings and was remanded into custody pending the outcome of his case. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the affidavit filed with the complaint, as well as the government’s motion for detention, Jenkins was the corporate controller for the Collin Street Baker (CSB) in Corsicana, Texas, from February 1998 through June 21, 2013. On June 21, 2013, Jenkins was terminated after CSB discovered the alleged fraud. In particular, Jenkins caused CSB checks to be written to his personal creditors and then manipulated CSB’s computerized accounting system to show that the checks had been voided. In order to keep CSB’s books in balance and further disguise his fraudulent activity, Jenkins created checks in CSB’s accounting system purporting to go to an approved vendor in the same amounts as the checks to his personal creditors. The checks to Jenkins’s personal creditors were used to bankroll a lavish lifestyle that included a house in Santa Fe, New Mexico; 43 luxury automobiles; frequent travel on private planes; and a watch and jewelry collection worth approximately $3 million. The government’s investigation shows that Jenkins caused 888 fraudulent checks to be sent to his personal creditors, resulting in approximately $16.65 million in losses to the bakery.
A complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the offense of mail fraud is 20 years in federal prison and a $250,000 fine per count. In addition, restitution could be ordered.
The investigation is being conducted by the FBI. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution and Assistant U.S. Attorney Melissa Childs is handling the forfeiture.