Kay Jenkins pleaded not guilty Tuesday in federal court to conspiring to help her husband, Sandy, embezzle $16.8 million from the Collin Street Bakery. Sandy also pleaded not guilty for the superceding indictment in a separate hearing.
Kay appeared voluntarily in federal court Tuesday, represented by her new attorney Joe Kendall, of the Kendall Law Group. Kendall is a former federal judge.
According to Kendall, Kay Jenkins offered to take a polygraph to prove she didn’t know about her husband’s fraud, but federal prosecutors rejected the offer. Kendall stated that the evidence against his client is entirely circumstantial.
“That means not a single witness will get on the stand and testify that Kay Jenkins knew about her husband’s embezzlement,” said attorney Jody Rudman, who is also working on Jenkins’ case for the firm.
Kay thought the money came from legitimate sources, such as an inheritance, Kendall stated in a press release Tuesday.
“She had her own money from a trust and inheritance that was her separate property,” said Kendall.
Her lawyers also added that the owners of Collin Street Bakery are multi-millionaire, sophisticated business people. “The sophisticated business owners of the company were fooled for eight and a half years, and so was Kay Jenkins,” said attorney James Rolfe.
Kendall added, “She is unfortunately not the first wife, nor probably the last, who was deceived by her husband about the family’s financial situation.”
Sandy Jenkins has been charged with stealing $16.8 million from his former employer over the course of eight years while he worked as the bakery’s controller. Jenkins remains in federal custody in Dallas. He was originally charged with 10 counts of mail fraud, but a more recent federal grand jury indictment added conspiracy to commit money laundering, money laundering, and lying to the bank to get a loan for their Santa Fe vacation home.
Although Sandy was supposed to go to trial in April, the new indictment means the trial has been pushed back until May 19.