Toy Company Owner Pleads Guilty to Defrauding Bank Out of $1 Million

ST. PAUL—Earlier today in federal court, the owner of a toy company pleaded guilty to defrauding a bank and investors out of approximately $1 million. Sandra Lee Calkins, age 67, formerly of Eden Prairie, pleaded guilty to one count of bank fraud in connection to her crime. Calkins, the owner of Princess Soft Toys, Inc., was charged on April 29, 2011, and entered her plea today before United States District Court Judge Paul A. Magnuson.

In her plea agreement, Calkins admitted that between January of 2008 and March 5 of 2010, she falsified financial statements regarding her company in order to renew a $3.25 million line of credit at Central Bank. Calkins, who handled the financial affairs for the company, admittedly included in those statements false information relative to revenue and net assets. As a consequence of the fraud, the credit line was renewed, and Calkins made multiple draws against it totaling $3,575,000. Central Bank suffered a loss of approximately $1 million.

Calkins also admitted that between January of 2008 and 2010, she defrauded at least 13 individuals into investing or loaning money to Princess Soft Toys through false misrepresentations. In order to induce the investors, Calkins supplied them with false statements. As a result, at least 13 investors suffered a combined loss of at least $562,000.

For her crime, Calkins faces a potential maximum penalty of 30 years in prison. Judge Magnuson will determine her sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation Division. It is being prosecuted by Assistant U.S. Attorney Joe Dixon.