Athens Review, Athens, Texas

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March 13, 2014

Kay and Sandy Jenkins indicted in bakery probe

Money laundering, conspiracy charges added

CORSICANA — A federal grand jury indicted husband and wife Kay and Sandy Jenkins Wednesday on 22 counts of felony charges related to his alleged theft of $16.6 million from his former employer the Collin Street Bakery. This indictment includes Kay Jenkins for the first time, and replaces the previous 10-count indictment of Sandy from last year.

Sandy has been in federal custody since August of last year, charged with 10 counts of mail fraud.

These new charges include 10 counts of mail fraud, three counts of money laundering, conspiracy to commit money laundering and lying to the bank to get the loan for their $700,000 Santa Fe vacation home. Potential penalties include millions in fines and more than 200 years in prison.

The charges stem from allegations that Sandy Jenkins used his position as controller at the bakery to write checks to pay off his personal bills from the bakery’s account. Legitimately, Jenkins made $55,000 a year, but he was spending about $250,000 a month, according to FBI records.

“Starting in at least December 2004 and continuing through approximately Aug. 12, 2013, Sandy and Kay Jenkins conspired together to maintain an extensive and lavish lifestyle through expenditures of the money embezzled from the Bakery. During this time, Sandy and Kay Jenkins maintained a vacation home in Santa Fe, N.M., a multi-million dollar watch and jewelry collection, luxury automobiles, and took numerous trips on private jets, among other things, funded with money Sandy Jenkins stole from the Bakery,” according to a statement from the U.S. Attorney General’s office in Dallas.

“During that time, Sandy and Key Jenkins incurred more than $11 million in charges on American Express credit cards, which were subsequently paid with monies embezzled from the Bakery. Those charges included, among other things, approximately $3.3 million in payments for approximately 223 trips on private jets contracted through North Dallas Aviation to various locations including Santa Fe; Napa, Calif.; and Aspen, Colo. The Jenkins also used funds Sandy Jenkins embezzled to deposit into their joint bank accounts, purchase a 2010 Mercedes-Benz, a 2013 GMC Yukon Denali, and a $25,000 men’s Patek Philippe 18 karat rose gold watch.”

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    Justice of the Peace Jackie Freeland identified the deceased fireman as Louis Lachney, 46. He was a Lieutenant with the Corsicana Fire Department.

    The crash was reported at 11:27 p.m. Tuesday and occurred  at a sharp curve in the roadway on FM 709 about two miles north of State Highway 31 near Dawson.

    DPS Sgt. Thomas Moore, supervisor at the crash site, said Lachney’s convertible Mazda was traveling north on FM 709 and failed to negotiate a sharp curve, leaving the roadway and overturning several times.

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