Corsicana Daily Sun, Corsicana, Texas

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August 31, 2013

Jenkins Case: FBI details spending habits of the former bakery controller

Corsicana — Sandy Jenkins was making $55,000 a year as controller at the Collin Street Bakery but was spending $250,000 a month, according to the FBI affidavit written by Special Agent Christine L. Edson and filed in federal court on Aug. 19.

Jenkins has been accused of stealing $16.5 million from his former employer over the course of eight years. He allegedly wrote company checks to his personal creditors then fixed the bakery’s books so it looked like the checks went to pay company bills.

The Federal Bureau of Investigation has stepped in to intervene in the divorce between Sandy and Kay Jenkins, arguing that any assets the couple owns should be forfeited. On Tuesday, Kay Jenkins was granted permission to remain in their Corsicana home for now. She has no cars or access to the couple’s shared credit cards or bank accounts.

The FBI is asking the court for the Jenkins’ two houses, the one on Third Avenue and the one in Santa Fe, N.M., arguing that stolen money was used to either buy or fix up the houses.

The affidavit gives greater detail into the spending habits of the couple leading up to Sandy Jenkins’ arrest on Aug. 12.

Previous FBI paperwork has revealed that the two bought luxury cars, BMWs and Lexuses, on a regular basis, took private jets to fly to their second home and on trips to the Caribbean and Europe. They owned numerous Rolex watches.

But this latest affidavit was done by an FBI financial crimes analyst who used bank records, receipts and other documents found during the searches of Jenkins’ former office and his two homes to try to piece together what the Jenkinses were doing.

Among the items purchased was a necklace that went to Kay’s waist from Van Cleef and Arpels, called the “Magic Alhambra” necklace, priced at $141,000. The couple was also friends with Karen and Dennis Boulle, owners of deBoulle Diamond and Jewelry in Dallas, and where the Jenkinses had spent at least $166,000, according to the affidavit.

In statements to the FBI, Bob McNutt and John Crawford both said they wondered how the couple could afford the new cars, a large collection of fine art and first-class travel which they enjoyed openly.

“McNutt stated that Jenkins would constantly drive new cars to work, which he thought was unusual,” the affidavit states. “McNutt explained that he heard that Jenkins’ wife, Kay Jenkins, had received a substantial inheritance and that Jenkins may also have received an inheritance.”

In his statement to the FBI, John Crawford said he was “intrigued” with the Jenkins’ lifestyle.

For example, Crawford noticed that Jenkins rotated the artwork in his office, because he had so many pieces of art. Crawford noticed that Jenkins used expensive pens at work rather than the typical office supplies at CSB, the affidavit stated.

He told the FBI that Kay and Sandy had taken a trip to Switzerland, specifically to visit a fine watchmaker, the affidavit stated.

The Jenkinses spent money lavishly on their homes. The Third Avenue home in Corsicana is 3,400 square feet, built in 1920 and fixed up quite a bit since Jenkins bought it in 1988. It’s on the 2013 Navarro Central Appraisal District’s records valued at $188,040.

The FBI affidavit goes into detail about new window treatments, flooring, roofing, even plumbing improvements in the last few years totaling $48,787. It’s not clear if that includes the kitchen remodel done about five years ago with all high-end materials and Viking appliances.

Their Santa Fe, N.M. home is on that county’s assessor’s office rolls as worth $784,380. Receipts show they made $40,109 in improvements on that house and paid $90,000 in mortgage payments, allegedly with the bakery’s bank account, according to the FBI affidavit.

The affidavit also states that the bakery’s books were not audited, and the invoice process wasn’t audited during the eight years that Jenkins worked in the accounting office.

The forensics accountant came up with this list of Jenkins’ creditors and the amounts paid to them, all allegedly paid for with bakery money:

• American Express, $11 million

• Citi Card, $1.2 million;

• Neiman Marcus, $1.1 million;

• Bank of America, $555,915;

• Capital One, $337,957;

• BAC Home Loan Servicing, $125,854;

• Lexus Financial Services, $101,303;

• Sewell (Lexus), $98,662.

In all, the FBI believes Sandy Jenkins took $16,649,786 through 888 checks written between 2005 through June 21, 2013. The high point, in terms of most checks written, was in 2006 and 2007, when he allegedly wrote 139 and 140 fraudulent checks, respectively. Most years, he wrote fewer than 100 checks per year.

The checks were sent to his creditors using the overnight express mail, and the bakery paid those bills, too. The average for overnighting the checks was about $300 a month.

Among the things left in his office at the bakery was a receipt from “Abbott’s Jewellery” in Antigua from Feb. 1 of this year for two Rolex watches, paid for with his American Express card for $20,295.

About two weeks after Jenkins was fired from his job, he allegedly went to Austin to visit his daughter and took a bag of jewelry and watches and left her apartment. That same day, an off-duty police officer found a gold bar, two gold coins and 16 watches worth more than $250,000 along a hike and bike trail. The rest of the jewelry, which the FBI estimates could be worth as much as $3 million, hasn’t been found.

     —————

Janet Jacobs may be reached via e-mail at jjacobs@corsicanadailysun.com. Want to “sound off” to this article? E-mail: Soundoff@corsicanadailysun.com

 

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