The wife of a former Collin Street Bakery executive has pleaded guilty to a conspiracy associated with her husband’s embezzlement of more than $16 million from the Corsicana business.
Kay Jenkins, 64, of Corsicana did not participate in the embezzlement, but federal agents say she deliberately closed her eyes to the source of the money used to pay for their extravagant lifestyle.
From 2005 to 2013, the Jenkinses incurred charges of more than $3.1 million on Citibank and Neiman Marcus credit cards, buying such items as watches, jewelry and other costly goods, federal agents said in court documents.
Kay Jenkins entered her plea to the charge of conspiracy to commit money laundering on Friday in a Dallas courtroom.
Under a plea agreement, Jenkins, who is out on bail, faces a maximum penalty of three years in prison and a $250,000 fine. She will be sentenced Sept. 16.
Her husband, Sandy Jenkins, 66, who is in federal custody, is awaiting his sentencing June 24. The former corporate controller of the company, which is best known for its fruitcakes, he pleaded guilty in May 2014 to mail fraud, conspiracy to commit money laundering and making a false statement to a financial institution.
Sandy Jenkins faces maximum sentences of 10 years for conspiracy, 20 years for mail fraud and 30 years for false statements. Each charge carries fines, the highest of which is $1.5 million for the false statement, federal officials said. He has agreed to pay full restitution.
He was corporate controller from February 1998 to June 21, 2013. He was fired after bakery officials discovered the fraud.
He is accused of embezzling more than $16 million. Federal officials said his annual salary was $25,000 in 1998 and never exceeded $50,000.
According to federal court documents, the couple incurred charges of more than $11 million on an American Express Centurion credit card from 2005 to 2013.
Kay Jenkins did not work outside the home, and federal agents said she knew that their income was insufficient to pay for their lifestyle.
Sandy Jenkins never specifically discussed the embezzlement with his wife, but she knew that he was lying when he provided different explanations about the source of his money, federal agents said.
Domingo Ramirez Jr., 817-390-7763