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[cutlery clattering]
Uh, it's magnificent.
World's best.
♪ Collin Street fruitcake is the best♪
♪ North, south, east and west♪
♪ So grab a tin and come on down♪
♪ Corsicana Texas Fruitcake Town! ♪
[Bob] What Dom Perignon is to champagne,
Collin Street Bakery is to fruitcake.
We've been making fruitcakes now for the past 125 years.
[Bob] Collin Street Bakery is about a $30 million a year business
in terms of total sales.
They make good bank off of fruitcake.
It's really good!
[Lesa] There was a few years they didn't understand
why the bakery wasn't making money.
We knew something was wrong.
[Janet] Certainly nothing bad on this scale had ever happened to the bakery before.
[Randy] When everything came to light,
we were all standing there, stunned.
[Nick] A very significant crime has occurred.
There is a lot of money at stake.
A whole lotta stealing.
The numbers were continuing to build
and we're starting to think, "When is this number gonna end?"
It can't be that much money. But it was.
I'm like, holy guacamole, this is, is a big case.
[Semetric] I'm thinking, "Oh no, what have I gotten myself into?"
I did not think that I would have a massive fruitcake fraud in my career.
[Brad] How did they pull this off?
This is a real stunt. Now, how did you do this?
People kept asking me, did you find money?
How in the world?
Now, predators are predators. They're gonna get you any way they can.
Obviously, he was the world's best liar.
He thought that he would get away with this.
[Hayden] I think he got in a scheme that was way bigger than him.
[Lesa] It's hard to keep a secret in the can.
You can try all you want, but it's gonna always come out.
[man] It's a town with a sense of history, and a sense of humor.
Corsicana, Texas. It's one of the nicest towns you'll ever meet.
He's so sweet.
Can I offer you all a refreshment?
I have Coors beer, I have pink Mumm champagne,
I have white wine, I have red wine.
Oh! I've got some pomegranate vodka.
I moved to Corsicana. I was a freshman in high school.
But most of the people are the ones that have been born and raised here,
their grandparents also, you know, born and raised here.
Mm-hmm. It's a very nice, quiet town.
We pretty much know everybody. We're very traditional, I think.
Good or bad. But I like tradition.
Oh, I'm moving, I shouldn't be moving.
I should stay where you told me to be.
I'll move up again.
It's a wonderful, little small town, kind of like Mayberry.
Mayberry, yeah, in... Whatever that show is.
Which I probably shouldn't mention, so.
Andy Griffith, is what it was. Mm-hmm.
[Hayden] Corsicana was the wealthiest town per capita in Texas for a while,
because of the oil. People were discovering oil in their backyards.
[Lesa] It's old money. There's lots of old money in Corsicana,
that's what they call it.
The Big Gusher was founded here.
Magnolia Oil Company, which is now Exxon Mobil. It all kind of started here.
It was a boomtown.
[Janet] It is a small town. I would normally say that it's an insular town.
We do have a high society, if you will.
[Semetric] I'm not gonna group everyone together,
but, there's certain families that have recognizable names,
that feel that they created the earth.
[Lesa] There's lots of different social groups.
There's supper clubs, and things like that. We have the country club.
Literary clubs and things that are fun.
[Lesa] You have to be asked and voted in.
There's a couple of ladies in town that I know,
that have been put up three times and they didn't get in. So...
[Janet] I'm not part of the exclusive book club.
Oh, my shame. [laughs]
It is very historic. It started in the '50s.
And my husband's aunt was one of the founders,
and it's just an old, continuing, old book club. And it's just a tradition.
It's just... Corsicana.
[Janet] Currently, probably, most of the money in town comes from agriculture,
manufacturing, that kind of thing.
And fruitcakes.
♪ We wish you a Merry Christmas♪
♪ We wish you a Merry Christmas ♪
♪ We wish you a Merry Christmas and a Happy New Year! ♪
I'm Bob McNutt.
I'm the President of the Collin Street Bakery in Corsicana, Texas.
I started here at three years old.
I am third-generation.
Hey, Bob!
[Hayden] He's as nice a man, I think I've ever known.
[Lesa] Probably the most genuine man that you'll ever meet.
Besides my husband.
We're on this earth just for a really short period of time,
and I think you should try and treat people fairly and honestly.
And expect that in return.
[Hayden] He is one of the funniest, warmest,
most generous human beings that you will ever meet.
I'm Hayden Crawford, uh, Vice President, partner,
uh, Collin Street Bakery's Customer Service.
We're the world's largest fruitcake company.
We turn out a million cakes a year.
It's 125 years old, so it was founded in 1896 on Collin Street,
thus the name.
[Lesa] It's a family-owned business.
It's just a tradition.
[Hayden] During the fall, when people began to think of the holidays,
and they start ordering from us,
the demand goes through the roof.
We go from 10, 20 cakes a week,
to 10, 20,000 cakes a day.
So, this is the facility that we use to produce our fruitcake.
Shipped to probably 190 countries around the world.
It's the best you've ever bought, baked, or eaten, or you get your money back.
Before we mix the fruit cake, you lock the bowl in and as the bowl turns,
it just kind of simulates a hand mix,
like you're turning the batter over.
This is the, uh, cooling tunnel.
So, the cakes come in, this is all one chain.
Cakes come here, down the line to hand decorate,
and you're ready to go.
I love what we do for people worldwide.
And helping to shine a little bit of happiness
and light through our fruitcake,
uh, at Christmas and during the holidays.
[Santa] I've come all the way from the North Pole to Corsicana, Texas,
to the Collin Street Bakery.
[phone rings]
Collin Street Bakery, this is Santa speaking!
[Janet] My mother thought it was delicious and so,
she was delighted when she got a fruitcake every year for Christmas.
This fruitcake tastes really good.
Mm! That's good!
- [man 1] This is my sugar for the month right here. - [man 2] This is really good.
This is good stuff.
- Come here, we'll give you a bite. - [laughter]
This looks wonderful, where did it come from?
Eat the cherry off first.
Mm.
It is delicious. Mmhmm.
[Jerry] Basically, it was designed...
Fruitcakes were, you know, served at Christmas.
Families.
Now, things have changed, the tradition of Christmas is not what it used to be.
No, kids go eat a Pop-Tart now. [laughs]
Tastes like home.
[Hayden] If I may, I'd like to read a list of our VIP customers.
Grace Kelly, actress. She later became Princess Grace of Monaco.
Princess Caroline, Grace Kelly's daughter.
Chuck Norris, actor, Walker, Texas Ranger.
Robert Urich, actor. He played Dan Tanna in the popular TV show, Vega$.
Uh, I loved it.
Dom DeLuise, comedian. Julius Erving, Dr. J,
basketball great.
Lyle Lovett, musician. Vanna White, TV personality.
And a fun story there, my sister is married to her brother.
John Ringling, Ringling Bros Circus.
And what makes that interesting to us
is that he would take cakes from our bakery,
take them overseas, give them out to family and friends.
They would write us, ask if they could get another one,
and that's how we believe that the business built.
Oh yeah, here's another thing.
You can see it in The Godfather.
-There's our tin, right there in the corner. - [bell dinging]
Fruitcake kind of came under assault, starting with Johnny Carson.
[woman] Johnny Carson says there's only one fruitcake in the world.
It just gets shipped from person-to-person.
- Nobody eats them. - [man] You keep it for a long time.
- You put it up in the closet somewhere. - Yeah.
And then you wait till next Christmas,
- and you give it to somebody else. - [audience laughing]
People can make fun of them, but somebody's eating that
and enjoying it and paying a lot of money for it.
People come from miles to come get these things,
and they ship them all over the world.
[Bob] Johnny's gone, but we're, we're still here.
So I think we know who won that one.
Have y'all tried the fruitcake?
[Bob] I take a lot of fine and the character of the people that work here.
[Hayden] It is such a wonderful place to work.
It's very family oriented.
[laughter]
[Jerry] Well, my name is Jerry Grimmett.
I came to work at the bakery in 1956.
I'm the only one that's still alive that was part of Collin Street Bakery...
in 1956. [laughs]
Now, we're doing about a million pounds of fruitcake,
maybe a little more than that, maybe a million, five.
[Bob] Collin Street Bakery is about a $25-30 million a year business,
in terms of total sales.
[Lesa] But, there was a few years,
that they didn't understand why the bakery wasn't making money.
[Hayden] We'd start the year, and we would think, "Okay,
we're gonna make one to two million this year.
At the end of the year, we'd look back and realize we hadn't made it.
If we turned out a million cakes a year,
we wondered... What is this?
[Jerry] Where's the money? It wasn't right.
Nobody knew exactly what was going on.
[Bob] Darlene as much as anybody was jumping up and down and screaming,
"These numbers aren't right!"
My name's Darlene Johnston.
I've worked with Collin Street Bakery since 1982,
in various positions. [laughs]
She was so good that she became the first female executive
at Collin Street Bakery.
They made me Vice President of marketing.
We were all wondering, you know,
why are we not doing as well is we should be?
We're working hard, like usual.
My name is Randy Wilson.
I'm a Corsicana native.
I was office manager.
We knew money was missing.
It did not make sense.
What are you spending on this? What are you spending on that?
[Jerry] We didn't know what was going on.
So they decided the cost was going so high,
so we started cutting back on how we were advertising.
- That wasn't it. - They talked for years about,
- well, we've got a computer glitch. - That wasn't it.
It has to be in some kind of process.
Is it in a waste of ingredients?
[Hayden] And that wasn't the problem.
Our controller at the time, a guy named, Sandy Jenkins.
We approached him. What-- Can you spot what's going on?
What's going wrong? And he was digging into the numbers but...
He never found them either.
It was just a mystery.
But what do you do? Start accusing everybody?
You know that it's like your family.
But, people were really hurt by this.
[Darlene] Different things were being cut.
[Hayden] Our staff stopped getting raises.
[Randy] There were layoffs.
[Hayden] It was affecting the staff,
it was affecting the community.
My name is Semetric Walker
and I was working in finance and administration.
[Hayden] Semetric, we had just brought her on. She was brand-new.
[Darlene] And so the CFO said,
"I would like you to pull all your invoices and give it to Semetric.
And let her go through it. And see what she finds."
[Semetric] Of course, I did my due diligence,
trying to go through the system.
And I stumbled across a transaction that was on the bank statement,
that wasn't in our system.
And so, concurrent with us investigating
where is this money possibly going,
she makes the discovery.
[Semetric] And I was just beside myself, I mean,
I can remember just being hysterical. I was crying.
[Randy] It was just shock.
Just, unbelief that this was the cause of all of our problems.
It was hard to comprehend, hard to get our minds around,
and, uh, and to realize that it was a friend who did it to us.
[Semetric] When I first came to the bakery, I was the youngest employee.
I didn't engage in a lot of conversation with people. I was, you know, very shy.
Really, kept to myself. Did my work, you know, and went home.
On that day I discovered the check,
I wasn't privy to really, the financial state of the bakery.
[Hayden] It happened on Thursday,
that's was when Semetric realized something was wrong.
[Semetric] It was just a normal day for me
and I stumbled across a check for $10,000 written to Capital One bank.
As an organization,
Collin Street Bakery did not have a relationship with Capital One.
I was like, "Okay, I need to get Sandy involved."
He was my boss, I was fairly new.
He had complete control of the entire system,
from invoice writing to bank reconciliation.
[Janet] She took it immediately to her boss, as one would.
Can you explain this?
I was like, "Sandy, uh, this check cleared our account.
But, I don't see any financial data related to it in our system.
And also, you know, we don't have an account with Capital One.
So, I'm not sure how this check could've cleared our account."
And then he gave her an answer that didn't make sense to her. It didn't add up.
[Semetric] His response let me know
there's more to it than what really meets the eye.
[Hayden] He said, "I know what that is, I'll fix it,
it's just a glitch in the system."
[Janet] He was like, "Oh, it was a mistake."
And she said that he turned very white.
[Semetric] There was like a ghostly white appearance that came over him.
And I could tell that this conversation was making him very uncomfortable.
So, he told me that he was leaving because he had a doctor's appointment.
I have a great sense of discernment.
I can, you know, look at someone
and I can tell when they're not being truthful with me.
Just by his reaction, I knew that I needed to look deeper.
And she decided to do her own investigating, very quietly, at her own desk.
[Semetric] That's when I discovered several checks that didn't make any sense.
[Hayden] She found these others, but she kept digging.
[Janet] First, she was able to find like, 16 checks.
[Hayden] But she starts looking further, and spots more.
She just kept looking.
[Semetric] Each year, you're working your way backwards
and it's like, oh my goodness, you know,
thirteen, 12, 11, it's like, how many years are we going back?
[Hayden] The numbers were continuing to build.
[Janet] Within the next weekend,
they knew that it was stretching into the millions.
But then the number kept going up.
[Hayden] What we thought was three million became seven million, 12 million,
we're starting to think, when's it gonna stop?
When, when is this number going to end?
[Janet] People were dismissive.
They were like, it can't be that much money. There's not that much money.
It can't be.
But it was.
[Randy] When it hit that last figure, it was like...
oh my gosh.
I came in and they said, we have caught Sandy stealing.
And I said, "Really? How much?"
And they said, "A whole lot of stealing."
He was able to embezzle $16.5 million.
It was close to $17 million.
[Hayden] How in the world?
He got caught. [laughs]
With his hands in the cookie jar. Literally.
[Janet] In the end, they found that he had written 1888 checks.
[Jerry] It'd been going on for years.
[chuckles]
Got away with it for a long time.
[Bob] Really? How could you let that go for that long?
[Semetric] I am terrified at that point.
Here I am, a person of the Black-American race,
and I have just identified that a person of another race
was taking something that didn't belong to them.
[Hayden] Sandy, he was kind of, under the radar.
[Jerry] I bet I'd go sometime, two or three weeks and never even talk to him.
I didn't know anything about him other than he was a controller.
Now, Sandy was very unassuming.
You would not have selected Sandy for much of anything.
But look, you don't...
You don't assume that anybody in the organization's going
to attempt to steal money like that.
So, he was just... Very, very quiet and soft-spoken.
[Jerry] If somebody said, "Sandy Jenkins has stolen from the bakery,"
I'd say, "I bet you a dollar he hadn't."
And I would've lost that bet.
He really had us all fooled.
I would've described Sandy Jenkins as a good friend and a caring person.
He's a very nice guy. I mean, he...
A couple times a year, he'd come into my office and say, you know,
"I think you're going to like this bottle of wine,
I had it last night and I thought of you
and it's a gift from me to you."
[Semetric] He was very easy-going. Never raised his voice.
[Randy] He was really funny.
He had interesting stories and he had kind of a dry wit.
He was like Walter Mitty.
He was, uh...
Quiet and demure and soft-spoken.
Short, grey-headed.
Kept kind of stubby like? Yeah.
He wasn't skinny, or anything like that,
I guess he didn't eat a lot of fruitcake. I don't know.
[Randy] The truth is, the first time I met him,
I had a feeling that something was off.
But everybody said, "No, he's great, he sits back here with us,
he's wonderful, he's one of the guys."
And I thought, "Well, I'm probably wrong."
We just didn't think Sandy was anything other than a trusted employee.
And a member of the team.
[Bob] So there are a lot of...
Decisions that we had to make and one of the decisions was, we just need to go ahead
and fire Sandy. We need to get rid of him.
When we fired Sandy, we brought in a policeman so that nothing would happen.
From a physical standpoint.
I saw Sandy and his boss go into our COO's office.
And they shut the door.
I was so nervous. I just didn't know what was going to happen.
[Semetric] The next morning when I show up, Sandy...
I'm not sure what was going on in his head.
He come into his office, and he was like, "Guess what?
I really didn't have a doctor's appointment.
I was really out house shopping."
And he showed me a house that he was going to view on Mills Place,
which is a very prestigious street here, in Corsicana.
And so I'm thinking in my head, I was like, wrong response.
[Hayden] So, they bring Sandy into the COO's office.
Confront him with it, show him the checks.
He doesn't know what to say, uh, he turns white.
So, they said, "We're not going to embarrass you.
We'll let you walk out of the building.
But we have a policeman down there,
he's not gonna let you back in.
We'll ship your stuff back to your house,
but you're fired."
[Semetric] He was dismissed and so he comes back to his desk,
and he gathers his things in a cardboard box and he is escorted out of the property.
I was standing at my desk, and Sandy was being lead out the door.
It was a total and complete shock.
[Janet] I was the reporter who covered the story when it first came out.
But, the gossip mill knew before I did.
[Hayden] Corsicana is a very small town.
And it's a very close town and everybody knows everything before you know it.
As soon as you get home, the stories have already beat you home.
Someone told me once when I got here,
do not ever talk about anybody.
Because, it will get back to them.
You don't know what's going on in Corsicana? Somebody else--
Ask your neighbor. They know.
Ask, ask anybody, they know. They know what's going on.
[Lesa] It's hard to keep a secret in the can.
You can try all you want, but it's gonna always come out.
[Hayden] But the town knew almost immediately.
It was no secret within the first week.
[Lesa] Everybody was all in an uproar.
It was the biggest... Like in that movie, it was the terrible awful,
That it happened in Corsicana.
[Janet] Wow. I mean, gossip just spread very quickly.
People were fascinated and very interested and wanted to talk about it
and wanted to go over it.
And as with most small towns, there is a code of honor.
People value that more than money.
And he broke that code.
[Lesa] The thing about it is, with him,
he was a predator, the way I see it.
Because, he preyed and took advantage of a family-owned, tradition in Corsicana,
and he had no right to.
That's what really upsets everybody.
I know he had friends outside of the bakery.
They were stunned too.
-Hi, I'm Brad Tekell. - I'm Janet Tekell.
We were friends with Sandy and his wife, Kay, and their daughter.
When they first got here, They went to work for the church as cooks.
They cooked the Wednesday night meals and then,
some of the senior activities would have food that they would provide for.
Sandy was a deacon, Brad was a deacon,
and we went to supper club with them
and went to Sunday school parties at their house.
Then we just got closer and closer and our girls got closer.
[Brad] And t hey were not, like, outgoing.
They just were real quiet, just kinda...
Very, very reserved.
They were very giving, very friendly, very generous.
Everybody trusted them.
[Hayden] For Bob and me and the rest of the folks at the bakery,
it was, "Okay."
Now we know it wasn't something else. It was Sandy Jenkins.
He was stealing the money that should've been ours and was ours.
But, he's out. He's not yet been tried and convicted,
and he's just living his life.
So, the police come and they begin to investigate
the criminal act of, of this embezzlement.
Uh, my name is Paul Ward.
I worked with the Corsicana Police Department from 1993 to uh, 2015.
We initially got the report and it was assigned to me,
that a clerk at Collin Street Bakery,
had discovered Sandy Jenkins was using their account system to pay for his debt.
At that point we were waiting on the bakery to complete their audit.
We wanted to have everything in order and make sure
that all the evidence that we had was properly attained.
Vice President and a couple of others,
I think the COO of the company had already confronted Mr. Jenkins.
Pretty much as soon as he had been terminated, he left the area.
[Semetric] He disappears.
I mean, I was a little terrified when I heard about that.
And I would live my life sometimes looking over my shoulder,
and seeing if, you know, driving and making sure no one's following me.
[Paul] He had lots of money and we had learned that,
He had another home in another state.
Which, we didn't know exactly where he was.
We had an idea but...
It did change the way that our case would go
because we no longer had the element of surprise.
We knew that if we were to contact Mr. Jenkins,
that he already knew that we would be coming to contact him.
And, it also could potentially change his answers to what he felt like we wanted to hear.
[Bob] Sandy used the mail to mail the check
across interstate lines, to steal money.
Using the banking system, wire transfers,
many of the acts that he was doing,
was actually a federal offense.
The Corsicana Police Department started looking at what they had
and when they realized that he had used the mail,
they were like, you know what? This needs more power than we've got.
[Paul] At that point, we knew that it was going to fall
under the jurisdiction of the FBI.
[Semetric] When you hear FBI,
automatically, it's like, "Oh, no. They're serious."
Like, these are not just cops.
It was, that's big news for Corsicana, the FBI to show up.
And the FBI came down like a ton of bricks. [laughs]
They brought in investigators,
they brought in forensic scopes, they brought in accountants.
They brought in power.
I'm Christine Edson. I'm a Special Agent
with the FBI's office in Dallas, Texas.
I grew up in Dallas and my dad really liked fruitcake for a long time,
So every Christmas, we would get the tin from the Collin Street Bakery.
When my boss got the call, I knew exactly the company he was talking about,
and I said, "I want that case."
I was the main case agent on this case.
At the time, I'd only been an agent for a little over a year.
So, I was relatively new.
I saw my role as an investigator,
to figure out where the stuff was and also, to be able to show
exactly how Sandy Jenkins stole money in a way that we could charge federally.
And ultimately, arrest him.
[Hayden] She was the classic, TV FBI agent.
Pretty girl, big .45 on her hip.
Just as cool and calm as she could be.
When she left, everybody's like, wasn't she on television?
[Christine] It's definitely the case that's gotten
the most attention, um, from the media,
of any other case that I've worked.
[Janet] It was fruitcake money.
And it was $17 million worth of fruitcake money.
People were fascinated.
I would hear about it in restaurants
and I would be like, wow, okay, we've struck a nerve here.
There was lines of cars that would go by their house, you know,
just to see if you could see anything.
[Christine] And people would drive by his house and be like, shouting things
out the window at him and Kay. And so he left Corsicana.
[Hayden] The FBI, they were knocking on doors, they were getting interviews,
to figure out what Sandy was doing and using that to build their case.
I talked to Bob McNutt, I talked to Hayden Crawford,
I talked to Semetric Walker.
Um, I talked to some other employees who may have been friendly with Sandy,
to understand what his lifestyle was like.
And to learn more about his wife as well.
[Hayden] Kay was a talented caterer. Very good cook.
She catered several meals here,
when we'd serve employees.
Kay was a fabulous cook. She was an excellent, excellent cook.
I remember she did yoga.
Kay was a very friendly person.
Our children were friends. My girls loved Kay.
They spent a lot of time at the Jenkins.
And she would cook for them and they would stay up late and watch movies.
And... She just had a way with everybody.
[Janet] She had some female friends, um, she got along well.
She was supportive of Sandy's career.
Kay was always very nice to me.
But, she was someone who was very much in charge.
She just knew how to draw you into her
and then when she was finished with you,
- she was finished. [laughs] You were done. - She would...
They just kind of, went to that next level.
We used to have dinner with them, my husband and I,
about once a week. But then after a while, we didn't.
And I just thought, well, he's moved on to, uh...
higher realms. [laughs]
[Tekell] We saw a pattern later of things that they did to draw people in
to their friendship. They were manipulating them, I think.
[Lesa] There were lots of people that...
Drank the Kool-Aid, as they say now.
I only knew Kay through the old Quintillion book club, that I am a member of.
And she was the treasurer.
We have a wine and cheese every year.
For two years in a row, Kay Jenkins donated the wine
and we have 200 women plus that come to these things.
I never really engaged in much conversation with her, 'cause I just always thought,
I don't know, I just had this eerie feeling about her.
I don't know, just intuition or whatever.
I really never got too much involved with her.
You know, she just, was just kind of snooty to me.
But, Sandy Jenkins? He wanted to know how much money it took
to be in the social scene in Corsicana.
What he considered the social scene in Corsicana.
Mm-hmm.
- They wanted bigger and bigger things. - [laughs]
More friends.
Maybe money buys friends, I don't know. [laughs]
[Christine] We learned from interviewing the employees at the bakery,
and then also friends of Sandy and Kay Jenkins that...
Sandy and Kay Jenkins bought a lot of jewelry.
[Hayden] Sandy Jenkins' wife wanted to show off to my wife,
and so she brought this gorgeous Van Cleef & Arpels necklace.
It's very noticeable, I mean, you know what it is when you see it.
That costs about $32,000.
[Christine] There were some jewelry stores that actually drove items down to Corsicana.
[Darlene] One of the jewelers from Dallas had came,
and brought a briefcase that was handcuffed to him.
And brought to Sandy in his office.
[Randy] He opened up a case of diamonds
and wanted us to look at the ones he had picked out.
And I was like...
Wow, that is so gorgeous. [laughs]
[Semetric] One time, he wanted me to put a watch in the safe.
And of course, I mean, I'm nosy!
I went online and I googled the watch and I remember like,
sending my sisters a text saying,
"I just put a watch in the safe for my boss and it was $80,000."
[laughs]
I like watches too, but I don't have those kind of watches.
The amount of jewelry was in excess of $3 million.
[Christine] They bought so many watches from de Boulle,
that when I went to get their records,
they were like, "Actually, we still have two watches in the vault
that they never picked up."
So, it was like $100,000 they just left sitting in the safe at de Boulle
for multiple years.
[Tekell] Some of the things that you saw
that they had bought was just crazy.
[Janet] His main home here, in Corsicana, I think
comes out to a little bit less than $200,000,
in appraised value.
But his New Mexico home was worth 3/4 of a million dollars.
[Hayden] Kay bought a Jaguar.
A new Jaguar.
[Lesa] They had many, many Lexus, Mercedes.
Sandy and Kay Jenkins spent approximately $2 million at Sewell Lexus.
The joke that I heard from the Sewell employees was that,
uh, they bought cars as frequently as people get oil changes.
[Hayden] Sandy had this plane that he would take almost every weekend.
[Jerry] He would fly somewhere,
and it would cost him $50,000.
[Hayden] That jet probably has $20,000 worth of fuel costs that comes with it.
[Lesa] They were flying everywhere. Going to the Caribbean.
Going to Napa Valley all the time.
Went to Napa Valley to buy all that wine and cases of it and bring it back.
They actually hired a private jet to fly them from Corsicana to Austin to go to lunch.
[laughs] So it was like, an $8000 lunch.
They flew 223 times over, I think, a 10-year period.
So, they spent $3.2 million on private jets.
[Darlene] And then we found out about their nicknames with Neiman Marcus,
[Lesa] Fruitcake and...
I think Cupcake or something like that. Yeah.
Nicknames. I mean that's...
That's amazing.
[Christine] Gucci, Prada, Louis Vuitton.
[Lesa] Purses and all the furs.
One thing that I learned from interviewing the personal shopper there,
was that at one point she just ran out of things to sell them.
Which I thought was pretty hard to do at Neiman Marcus. [laughs]
They spent $11 million on the Black AMEX over an eight-year period.
I think it was like, $120,000 a month.
Whereas Sandy was making $50,000 a year.
[Semetric] Because how Sandy spent money,
I remember asking someone,
"Are you sure, you know, he didn't win the lottery?"
We often scratched our head about how this...
how is he financing these junkets off in a jet?
We just never could figure it out.
[Darlene] He asked me one time,
if my husband and I would like to, uh, split a villa with them in Italy.
And I said, "I work for Collin Street Bakery and I can't afford that."
[Bob] The thing that probably should have just, struck a note,
was that, if you're a guy that's making, you know, $50,000 a year,
and taking $25,000-a-week trips out to Napa Valley,
why would you even want to continue to come in to the office?
[Randy] Obviously, he was the world's best liar.
[Hayden] Sandy Jenkins was a very nice guy, I thought.
I ended up realizing he is a bit of a Jekyll and Hyde
and he had this one persona here, and he had this entirely other persona,
that we didn't know about.
[Semetric] We didn't know really, who we've been working with.
His whole identity was like, false.
The... you know,
soft spoken, the easy-going Sandy,
now turned out to be a monster.
[Janet] I think when you have that kind of spending,
that kind of lifestyle, in Corsicana,
you're going to attract speculation.
And people had to wonder, where does that money come from?
[Bob] In retrospect, you can look back and say you know,
you should've seen this coming,
because there was a lot of evidence.
But Sandy had a back story for everything.
One of his stories was he had an uncle who owned a lot of funeral homes.
So, he would just let Sandy use his private plane
and that was his story about how he had this plane.
[Brad] His story was of course, that they had inherited
this money and we're going like... Hmm.
Pretty good inheritance, I guess. [laughs]
He told people that he was like a car investor.
That he had figured out how to just trade cars and make money in the process.
He said he sued his father-in-law because they had a trust fund
and he won the suit and he got the trust fund.
He said he had expensive watches that his dad had collected
and that he had been selling some of those watches,
to buy some of this other stuff.
I believed what they told me.
He could look you right in the eye
and tell you anything you wanted to hear.
I had no reason to not believe the man. None of us did.
I thought he was a nice person.
He was one of our own. We, we trusted him.
And he had millions of dollars, of our dollars, in his hands
and he chose to abuse it.
And I felt very betrayed that...
to think back, that he could just never
show any guilt about any of it.
And that he was spending bakery money to do all this.
Which was taking away from the bakery, which in the end,
takes away from each and every one of us, employees.
[Randy] And it was very devastating. And it was hard.
Very hard to accept.
There were people who were really hurt.
Financially.
People who weren't able to have raises, for years.
[Hayden] Our staff stopped getting raises.
We were paying less in, in sales taxes to the community.
He had no idea what impact he was having by that selfish act.
[Lesa] Bob... what an invasion, what betrayal.
and his family has, you know,
worked so hard to make that business,
And then for them to lie so much about everything... You know?
It's terrible.
I saw Bob cry over, over this.
Um, he came to me and said, "I'm, I'm going to quit.
Uh, it's because of me this happened."
He took it on his shoulders.
Uh, he was ready to give up his family business for the guilt he felt over this loss.
[Bob] When it comes to the theft,
and all the money that was stolen,
there's really only one person that's responsible, and that's me.
You know, it's affected, certainly my family, and the people up here,
with you know, the sense of betrayal.
That's just, you know, unbelievable.
I can't get my arms around it, really.
that you could look somebody in the eye every day, smile,
and just know that you're stealing.
What kind of tormented soul is...
you know, what kind of existence is that?
I am Randy Goolsby.
I lived in Wortham, Texas, with Sandy.
I remember him coming to Wortham.
It's a rural town of, they say 1000.
Everybody knows everybody.
If you had children, those children know your children.
So, we all grew up a very close, little community.
Sandy was a little different than the guys in my class.
Sandy didn't care about sports.
He was very musically inclined. He loved the piano.
And he came in like he was going to a prep school.
He had a little knit shirt, a little black belt, khaki pants,
hard rimmed glasses.
When the Who's Who day came to vote on people in school,
Sandy and a girl were voted most fashionable.
Well, Sandy got that three years running at Wortham High School.
His parents were storeowners.
Sandy's father, Claude, was a very quiet man, always.
And his mother, Helen, was very vocal.
And I, I remember one of the women at my mother's beauty shop,
one time said, "Lord, there comes Helen."
Said, "Let's go in and get all our talking in,
because we won't be able to talk when she gets here."
So... [laughs]
I kinda laughed, but Helen was that way.
She had a lot to say and she wanted you to know about it.
Claude, Helen and Sandy ran their store with zero other employees.
And they did well with it.
He got to see that this is what you get for your money.
You know?
You can put your K. Wolens shirt beside your Neiman shirt,
and you can tell the difference.
And that difference is what you pay.
And what other people think about it.
So, I think Sandy got that side of wanting more, from Helen.
She loved the name Neiman's.
And Claude made the statement that if Neiman-Marcus sold poop in a bag,
that she would give them whatever they wanted for it.
And she had those things that allowed her to, uh...
To do what Sandy hadn't done.
And that was to have a lot of friends.
Sandy wanted to, to fit in.
And, uh, he lacked for companionship that was close,
that the rest of us had.
He was that person that, we're going to be nice to him,
because not only did the teachers say, and my mother would say,
"Randy, Sandy doesn't have any friends.
And I expect y'all to be friends."
Sandy went straight to school after graduating. He met Kay.
We never crossed paths again, until Sandy was working at Collin Street Bakery.
[Tekell] They were seeking a job when they came to Corsicana.
They got the cook job and then he got the job at the bakery.
They got everything they wanted.
But, I don't think that the ever could get past that stigma of cook.
That, a lot of people, um, wouldn't accept them into their group because,
maybe they had been a cook.
[Goolsby] When Sandy was working at Collin Street Bakery,
instead of being the shy, not fit in,
Sandy was part of it. And you could tell.
He had a feeling about him that, by golly,
he finally found a clique he fit in.
[Brad] He just worked his own way through the organization there, whatever,
until he was I guess, controller.
[Goolsby] And he never missed a Christmas
of sending Ethel, my mother, a fruitcake.
I don't think until my mother left this earth, that she ever believed,
that her little fruitcake fairy was capable of doing something like that.
But when he did it, he did it big.
My name's Nick Bunch. I'm an assistant United States attorney
with the United States Attorney's Office
for the Northern District of Texas.
From the start of this case, I start working with the FBI agent, Christie Edson.
And we began the process of putting the case together.
I have the investigative role, but, um, he's going to be using that evidence
to charge someone with a crime.
We made the decision early on and this is working with Melissa Childs as well,
that the actual items Sandy bought,
were going to be things we wanted to seize.
[Melissa] My name is Melissa Childs.
I'm an assistant United States attorney.
My job is to follow the money and find what they did with the proceeds of that crime.
And take back the things that the defendants have acquired with those proceeds,
um, in order to liquidate them
and recover as much as we can for the victims.
[Nick] We believed that there would be evidence of this crime located in their house.
[Melissa] We were able, pretty quickly, to get what we needed
for a search warrant.
[Nick] When we got to Sandy's house, nobody was there.
[Christine] I received a warrant that essentially gave me the ability
to seize anything of value.
Sandy had a huge jewelry safe installed in a downstairs closet in his house.
So, we knew that we needed to get into the safe
and recover the assets for the victim.
There was just so much stuff to take.
[Melissa] There was a wine and liquor collection, there was a grand piano,
there was a cedar sauna that we found in the house.
Our photographer was literally driving down the street
and he saw the activity.
And so, he called us at the paper
and I went down and started talking to people.
It was attracting attention, people had stopped their cars.
People who were out walking had stopped and they were collecting in little clumps.
[Lesa] If somebody was down there,
and something big was going on, they'd call around to you.
"Gotta get on down here and see what's going on."
I think I called you.
I was probably at the store.
Somebody must've called me and said --
Somebody called her and, "Hey, did you hear about Jenkins?"
[laughs]
Of course we called somebody else, "Yeah, hey!
Yeah, there's FBI crawling all over his house down here." [laughs]
[Lesa] I mean, we popped in our car and ran on down there
and parked! [laughs]
To get the bird's eye view. I mean, it was the biggest entertainment in town, that.
[Christine] Once we finally found the items we were looking for,
we had somebody come drill the safe.
[Melissa] In the safe, there was jewelry items
that just looked like museum-type pieces.
So it was really
something to behold. [chuckles]
When we searched Kay's closet, we found
a lot of expensive clothes and shoes and handbags.
But then, as we went through the closet,
we also started finding notes,
and we found these spiral notebooks.
Once I started going through the notebooks,
I realized what they were, which was essentially a record
of all of the expensive jewelry and watches
that they had purchased.
With dollar amounts.
Although there was jewelry and watches in a safe,
it was evident that maybe there were items missing
just from the placement in the safe.
They had searched very closely in that house,
but they were also wondering, okay, where else is there stuff?
He had to know that eventually,
the house of cards was gonna fall.
[Christine] I was sitting at Nick's office,
um, at the US Attorney's office,
uh, just talking about this case in general,
and sort of strategizing how to go forward.
I can remember sitting in Nick's office with Christie.
Out of the blue, we get a phone call...
...from an officer
um, with the Austin Police Department.
And they ask us if we're investigating
something related to Sandy and Kay Jenkins,
and we're like, "Yeah, we are."
Sandy Jenkins has a daughter
who lives in Austin,
so he's got connections down there,
and we're certainly interested.
And then what we learned is that an off-duty
University of Texas police officer
had been on a hike with a friend.
[Nick] Down in Austin just south of downtown,
there's something called Town Lake,
very nice part of Austin.
[Michael] Me and my friend were just enjoying the day
and as we were coming around here,
she happened to see a watch laying at the water's edge.
And as you kept walking,
every five, 10 feet,
there was another item sitting at the water's edge.
You know, like, oh look, there's another one.
And it was more of a...
...like an Easter egg hunt, of course,
uh, picking items out of the lake.
Piece of jewelry after piece of jewelry
after piece of jewelry.
So we're just kind of trundling down the walkway here
holding fistfuls of jewelry and watches in our hands.
To say we were in disbelief was an understatement.
We actually went back to my house
and started Googling some of the names
and finally found a match.
Turns out that that particular one
was valued at, like, $30,000.
Who throws away a $30,000 watch in the lake?
How crazy, you know? Why would you do that?
Who does that?
Just a strange occurrence. [laughs]
Throwing these watches, you know, $30,000,
just start throwing them in the lake, just getting rid of them
I don't know if he just panicked or did whatever.
Why would you go dispose of it in that manner?
I... who knows? That's crazy to me.
[Michael] So we took them to a random jewelry store
just to try to authenticate is this a real watch or not.
It was determined that they were real.
So at the time I worked for
one of the local police departments here in Austin.
I turned everything over to the Austin Police Department.
The Austin Police Department contacted Rolex.
[Melissa] That watch actually had a serial number
that came back registered to Kay Jenkins.
And so that ended up being the reason
that they called the Corsicana Police Department
and then the Corsicana Police Department was like,
"Oh. We know what this is about.
You need to call the FBI."
I had friends who worked at the Austin American-Statesman,
and they called me and said,
"You are not gonna believe..."
Ended up recovering, I think, 16 watches that day.
[Michael] So I was actually
playing Call of Duty at the time.
The doorbell rings, I answered the door
and just like in the movies, so to speak,
some folks in black suits asked for me.
I think, you know, the FBI can be a little, uh,
direct and intimidating, for lack of better words.
[laughs]
[Michael] They basically wanted to know when I found the items,
how I found the items, where were the items at,
who was with me.
I'm not sure what they thought my involvement was,
but I wanted to be honest with them and let them know,
hey, I just happened to find these items.
That's it.
[Melissa] We had a dive team go into the lake.
They basically did a training exercise
with magnetometers
in Lady Bird Lake and recovered
another huge amount of watches.
I think there were 38 watches total recovered from the lake.
And a gold bar
and a couple of gold coins,
which ended up amounting to about
a half million dollars worth of stuff.
I had friends down in Austin who said,
"Well, we're going swimming this weekend!"
[laughs] I was like, well...
[Michael] Who finds bars of gold
and gold coins
and thousands of dollars' worth of jewelry laying in the lake?
Never in your wildest dreams
would you think that you would be involved,
let alone be intimately involved in it.
The guy that spotted this, I've never met him.
I'd love to meet him.
[woman] Think when Bob McNutt sees this,
I think he's gonna send you a fruitcake. [chuckles]
And that'll be the first, first fruitcake I have.
We'll see how good it is.
[Darlene] When they said they found where he had dumped
the bag into the edge of the water,
we couldn't help but wonder
if they'd dumped some more somewhere else.
They went to Austin when they got found out
and so we really have no idea
where they might've carried it.
And because they had that jet and was flying everywhere,
you know, who knows?
[Lesa] You know, I heard
that they were going to Switzerland all the time
for day trips and overnight trips and stuff, so...
...maybe there's money hidden over there. I don't know.
I think he probably has stuff stashed
in various places.
[Brad] I think there's still something out.
I don't know if it's gonna be
gold bricks or dollars or what.
[Tekell] I think there's money hidden,
and probably jewelry hidden.
Where is it? You know, I don't know.
Somebody will find it.
Oh, look! [chuckles]
[Janet] If Sandy dropped all of it in one place
or if he scattered it,
or if he just chunked the whole thing in the lake,
I don't know.
But regardless,
you don't throw a Rolex in a lake,
and he did.
So it gives you an idea
this is not a person who is still operating rationally
or is in control anymore.
He had lost control by that point.
There are a variety of things
that, that criminals can do with money,
assets that are hidden somewhere,
they are transferred overseas.
It's not like the bakery took his passport.
He was not arrested immediately.
He had time to flee the country.
He had time to cash out.
He didn't.
They went to their daughter's house in Austin,
and then they went to their vacation home in New Mexico.
So we were working as fast as we could
to gather evidence that we could charge him with a crime,
so then we would have the ability to arrest him.
That was why we ended up going back the second time.
We get a second search warrant and we go back down there.
They showed up in, in all their gear with all of their trucks.
[Christine] We knocked on the door
to announce our presence.
Maybe thought the FBI wouldn't come back.
And it just so happened that Sandy was there that day.
So he came out very quickly.
It must've been a shock to him.
He was gone at least three weeks
from the time he got fired to the time he returned.
I mean, why wouldn't you go out in the country
and hide in a shack or something? But no.
[Nick] But since he was there
and we had evidence of him trying to dissipate assets into Town Lake,
we made the decision to just go ahead and charge him,
and they went ahead and made the arrest of Sandy Jenkins.
[Christine] And so we put the handcuffs on him,
put him in the back of the car
and drove him back to Dallas.
That day when they came to arrest him,
my sister and my mom sent me a text.
"Hey, the FBI is at Sandy's house.
Hey, we're seeing all these cars taken away."
So, they were keeping me updated on what was going on
'cause I was here at work.
And the neighbors got mad at us
because she thought we didn't have anything better to do
than to sit out there and watch this all go on.
Well, it was entertainment! It was facts.
[chuckles] I mean, where else would you be?
[Nick] His lawyer convinced him
to just waive his right to what's called a detention hearing
where the judge would have to rule on that motion.
And so the court ordered him detained at that point
and so he went straight into a federal detention center.
[Janet] Kay was allowed to live in the house
even though they had surrendered everything that they owned,
except the clothes.
[Lesa] She called somebody within Quintillion and wanted to know
where to send her membership money,
and we were in one of our meetings, and we were like,
you've got to be kidding.
She thinks she's gonna come back in here
and be a member of Quintillion?
[Semetric] Kay wanted to divorce him, I guess to try to prove
that she wasn't a party to anything that he was doing.
[Bob] They got divorced.
Surprise, surprise.
There's no way she didn't know.
[Semetric] She may not have wrote the checks,
but she was glad to spend the money.
His wife always seemed to wear the pants in the family.
When the electricity got cut off,
she went to Austin.
But we knew that there was a possibility
of her facing criminal charges, as well.
[Christine] Sandy's lawyer, Brett Stalcup,
was another interesting character
in this case that, that was the Collin Street Bakery case.
The pigs get fat, and hogs get slaughtered.
That's, that's the motto we live by.
That sounds like a Brett Stalcup thing. [laughs]
[Brett] I'm an old-fashioned lawyer that believes that we take care of our own.
I'm proud to be a lawyer. I'm one of those guys that
if I say it, I think that you can count on it.
My life changed a little bit when Sandy Jenkins came in.
He sat down,
and he looks
very meek, sad,
cowardly, almost.
Doesn't talk much unless you pull it out of him.
Sort of like that cartoon. What was that cartoon
with the laughing hyena? You remember? And the bear?
Yogi Bear and the laughing hyena?
And he never-- oh me, oh my.
That's what he sounded like. Right?
The Yogi did all the talking for him.
And he started talking about, well, I've been accused of...
...taking money from my business,
and I asked him how much, and he said an amount.
I'm like, holy guacamole. This is gonna be,
this is a big case.
So we wanted to talk to Sandy
and, um, get his side of the story
about what happened.
[Brett] At that point, everyone is wanting
to talk to Sandy.
Sandy could help himself by cooperating, right?
He ended up facilitating Sandy talking to us.
[Brett] I was suggesting, look,
you don't have anywhere to go.
Now everyone's mad at you, anyways.
You're going to get some time.
Let's go ahead and start doing it.
[Christine] You know, he just sat across the table from me
and just started, um, explaining
why he had done it.
Um, when it started, how it started,
how exactly he did it.
He spoke very softly
with a lot of fear in his voice.
He was lost.
He had a lot inside him
that he never probably ever got out, you know?
He needed more than a lawyer. He needed a,
he needed a counselor/friend.
He was full of shame and full of guilt.
I think he pretty quickly realized
that the gig was up, and he was pretty cooperative.
[Christine] He told me it had been going on for so long
and I think he had just had this, um...
...this feeling of fear all the time.
So, it was almost a relief when it was all over.
He was able to corroborate some of the, um, details that we had
from the bakery regarding, um, sort of,
how he had engaged in the fraud.
And Sandy told me that, for him, it started
stealing from petty cash.
That it sort of started small with kind of skimming
from the till and then really spun out of control from there.
I asked him why he threw stuff in the lake.
And he said, "I don't know.
It's probably the stupidest thing I've ever done."
And then he said, "Well, maybe the second stupidest thing I've ever done."
[laughs] I'll never forget on his deposition
Sandy said he threw the watches, he threw some,
I think, in a trash can, some Rolexes,
and they were platinum. They weren't gold.
They were platinum,
diamond bezel,
50, $75,000 watches.
This lawyer says,
"Draw me a map." [laughs]
I want to go find those watches.
We really were trying to figure out, um,
if there were any remaining places
we needed to look for stuff, and also to understand sort of
what was going through his mind when he started this.
The main issue was that um, he was the one writing the checks,
but he was also the one reconciling the books.
There was no audit conducted, uh, periodically,
and so he was able to create this system where he was paying
the bakery's bills and his bills
[chuckles] at the same time.
Semetric Walker found expenses that didn't make any sense.
Sandy had complete control of the entire system
from invoice writing to check printing.
That's an accounting no-no.
What he would do is he would make up an invoice
to an authorized Collin Street Bakery vendor,
and that check written to that vendor
would be thrown in the trash.
He would then make up a check to a vendor
that he wanted to pay,
and that check would be voided in the system,
but the check would clear.
[Lesa] The young girl,
she figured it out. The checks that were missing,
the checks that were voided out but yet the money was, all this--
She's the one that figured it out. One smart little girl.
[Christine] I always told her
that she's really the hero of this story
because she figured it out. [laughs]
And I just came in later and investigated,
but she was really the one that stopped the scheme.
If he would've stopped a year earlier,
I don't think he would've ever got caught.
He was in it too deep.
There was a lot of dead bodies.
I think he got in a...
...a scheme that was way above him.
Way bigger than him.
[Christine] Sandy's embezzlement scheme started gradually
where he showed up with a nice watch,
and then he bought himself a nice car.
And so, that timeframe, he and Kay
were traveling to Santa Fe quite a bit
and they ended up applying for a mortgage
on a second home in Santa Fe.
[Nick] Every embezzlement case,
the motivation is largely the same.
It's people who think that they are undervalued.
They see others in the company
getting better opportunities,
more money, benefits, and they decide that they're going to kind of
fix that problem on their own.
He felt that he was...
...not getting what he deserved at the bakery.
He told me that before.
I think it all goes back to not being grateful for what we have
and wanting what somebody else has.
I think he felt
the McNutts have all this,
I should have some of it.
It became like a drug for him.
Like, I'm doing this and no one has caught me.
Then, of course, he needed to sustain his lifestyle.
[Jerry] He got a position
that his lifestyle was here,
and he couldn't go back to a $50,000 a year lifestyle
when he's living on a $2 million year lifestyle. He couldn't go back.
So he got away with it, then he couldn't get out of it,
Like, he just was spending, spending, spending.
[Bob] I think he saw material things,
perhaps, as something that would kind of
help fill the void.
I think his desire,
his strong desire to be liked drove him to do this.
[Bob] They longed for social acceptance.
I believe that.
And, uh, you know,
you can certainly buy some friends for some time.
I don't think he ever amounted to what he wanted to be.
He didn't have any friends.
I think his friends were vendors, right?
People that worked on his house or fixed it up
or selling him a watch or...
How many cars did he buy? 30? 40?
They're all friends then.
Then when they figure out what's going on,
it's sort of like you're patting that dog until it bites you.
Then you quit patting it.
It's sad.
And his wife and him were two separate entities,
and I don't think he ever got approval.
Just a little remark he'd say about,
well, I gotta keep Kay happy.
[Semetric] Kay was the dominant person
in that relationship.
He did march to her beat, you know,
whatever she wanted, he made sure that it happened.
[Bob] Sounded like his marriage
was just miserable.
Despite the glamour of spending all that money.
Their marriage on a one to ten,
if you were to ask me, for my opinion,
was a two.
That picture in that Learjet tells all
if you really look at it,
with his wife, and trying to make her happy.
He had his hand inside her arm, you know,
but there's, there's no love there.
So initially, the indictment charged Sandy
with multiple counts of mail fraud
related to the check invoicing scheme.
So, we picked out 10 instances where we could show him
mailing a check to one of his personal creditors
from the bakery's funds,
using the logbook that we obtained from the bakery
showing that Sandy was mailing it.
[Melissa] And then, because their spending
was so excessive
and, and trying to chase and trace all of that money
through the property that they had acquired,
enabled us to bring money laundering charges.
Our focus in the investigation didn't really turn to Kay
until a little bit later.
We were trying to figure out, um, exactly how much
Kay Jenkins knew about what was going on.
I mean, she had to have known.
She was shopping in one of the most,
some of the most expensive jewelers in Dallas.
She had two huge Louis Vuitton steamer trunks.
I mean, come on.
[Peggy] If my husband had brought home
a new Mercedes every few months for me,
I would've known there was something up.
[chuckles] So, yeah.
She would always buy
the same car in the same color.
She would get the exact same car model,
everything, except just a new year.
And one time her new car came in, and it was in the wrong color
and she had him replace it.
It was supposed to be peacock, or something, blue.
She was angry with him and said,
"Take this one back, everybody will know,
and get me the one I always get."
She wanted the exact same color and everything
so nobody'd know she had a new one.
You know? They went to extremes
to cover things up.
Her defense, of course, was that she didn't know,
just the level of spending
and, and knowing how much he was making
and how much they were spending.
That didn't make sense.
She had to realize, um, that something was going on.
When we were interviewing her friends
and, um, gathering evidence specific to Kay Jenkins,
while she said that she didn't know how much things cost...
[Melissa] One of the highlighted items
from the search of the home
was actually the ledger.
We have necklaces and bracelets.
Here we have diamonds and rings.
Kay had the itemized list
and inventory, including the dates and amounts spent
on each item of jewelry
that they had acquired.
Multiple rings, some pearls.
That was really helpful.
The amount of spending that was specifically tailored to Kay Jenkins
was a huge portion of it.
[Melissa] We had discovered with the bank loan application
for the Santa Fe, New Mexico, property,
that there had been false statements made on that application.
And those false statements were, um, signed,
under penalty of perjury,
by both Sandy and Kay.
They had to sign a mortgage statement
and in which Sandy said,
that he made 25,000 a month.
Not 50,000 a year.
And she had to co-sign that. For me, that's it right there.
She had to know that things weren't on the up and up.
[Nick] The evidence was very overwhelming.
We indicted Kay Jenkins.
[Christine] Kay was charged with conspiracy to commit money laundering
and then some substantive money laundering counts,
and also making a false statement
to a financial institution.
She pleaded not guilty.
She said she didn't know anything.
She said she wasn't part of that, and that
he had told her lies and that she was innocent.
We were all gobsmacked.
[Melissa] This was a somewhat unique aspect to this case,
in that the bakery
wanted the return of the seized property.
The vehicles and the piano
and the wine collection, to do with what they pleased,
presumably liquidate and sell them,
but we gave that stuff back to them
instead of having the marshals sell it
and give the Collin Street Bakery a check at the end.
The house in Corsicana
was so chock full of personal property
that needed to be catalogued and itemized and inventoried,
and, frankly, disposed of, before the home could be sold.
I'm Denise Harper.
Well, I was the listing agent on the Jenkins house.
I've been selling real estate for 22 years,
and I've never had to go through with a listing
working with the FBI.
It was quite unique. [chuckles]
The woodwork is beautiful.
The wood floors are beautiful.
The kitchen had been remodeled
and updated with some high-end appliances,
but it still had kept the charm of the age of the house.
It was a great listing.
There was a lot of interest just because of the, you know,
the stuff that was going on.
So there were a lot of people that just wanted to look.
A buyer had come into town to meet their agent
and put an offer on another house, and was actually
just driving down Third, saw the sign up,
one of the first days it was up, and was like,
"Oh, my gosh, I've gotta see that house,"
and she put in an offer.
The house sold for...
ready, y'all?
$197,000,
which sounds crazy today,
but at the time, it was market value.
[Peggy] When I first bought this house people did not know me,
they just knew where I lived.
And, you know, people would point and then I'd hear "She bought the house."
I like to collect napkin rings with cats.
I like to collect a lot of things with cats on it.
And I've lived here a little over seven years.
Welcome to the foyer.
Even though, sometimes it seems like a waste of space,
to me, it's just cool to have a foyer.
This is the chandelier that the Jenkins bought.
A friend of mine looked it up.
They paid at least 15,000 for it.
I found this house by accident.
I knew nothing about the Jenkins.
I figured it out, people told me.
Here. Come look at this real fast.
This is where he hid the jewelry.
People kept asking me, "Did you find money?"
I found one credit card.
A kid that was helping me move found it underneath the desk drawers.
Wedged in where Mrs. Jenkins did her office things.
So she hid it there, I guess.
I was hoping I'd find some gold too, but I did not.
'Cause they had an estate sale when I bought the house.
[news anchor] The personal possessions of the man accused
of embezzling nearly $17 million
from the Collin Street bakery will go on sale tomorrow.
They had talked about doing an auction in the front
and then they talked about moving it, but there was so much stuff
that just wasn't feasible, so they opened it
for people to come in to shop.
[Janet] It was a giant garage sale.
And so, it was the stuff that they were trying to offload
to recover some of the money.
[news anchor] Proceeds from the sale will go
to the Collin Street Bakery.
And, you know, you get a little piece of history.
Get a little something.
But some stuff, like you're wondering, what was that?
[Janet] It was stuff that had been bought with stolen money
and so it gave it an extra cache of excitement,
a little titillation of you know,
this is my part of that crime.
It was newsworthy enough for us to put it on the front page.
Um, but they also had an ad in the paper.
[Darlene] It gets around.
People just talking.
It just, you know, spread like wildfire.
[Bob] Second day of the Jenkins estate sale.
Big line.
They had a long line, you know.
So I took a box of cookies over there,
you know, just trying to, you know, get everybody to bid it up.
Tell 'em to buy something, pay a lot. You know?
[Hayden] Bob walks up and down the line
of people waiting to get in
telling them to have a free cookie on him
and spend as much as they could in the house.
[Semetric] May as well make lemonade out of lemons, you know?
A bad situation, try to make it
at least profitable for the company.
[Janet] But I think a lot of people were there out of curiosity.
They wanted to see more than they wanted to buy.
Other people were hoping to get a bargain, right?
I know that they shopped at Neiman Marcus,
so I'm gonna get me some Neiman Marcus stuff for cheap.
He bought things that showed.
He wanted people to know he had wealth.
They had, you know, all sorts of cabinets everywhere
to house their, their expensive things.
Paintings and they had all the lamps,
the fancy lamps about them.
They started at like six or 700 and went on up.
Bedding, couches, you know, purses, kitchenware,
dishes just everything that you would think would go into a house.
The most interesting thing to me was a mattress
that was upstairs.
They had a mattress that was made out of horsehair
that was $39,000.
Who in their right mind would pay $40,000 for a mattress?
They slept in separate rooms
and I don't know which one had the mattress.
I did not want his mattress, thank you very much.
- Someone else did. - Somebody bought that mattress
and I'm thinking, "Really?"
I went as a reporter and I turned around and went back as a customer.
But a lot of it was ugly.
I don't mean to be unkind but these people
did not have the best taste.
If you're gonna steal money why wouldn't you spend it
on things that, to them, would be useful.
Or beautiful. Or... But he didn't.
Certainly the people that I talked to
said "I could've spent that money better."
Or "I could've been wiser about that money."
What would I do with 17-- well, I wouldn't steal it
but if it just fell in my lap, what would I do with $17 million?
Oh, boy. 17 million.
Are you saying tax-free dollars?
[laughter]
I don't know, I'm not answering that.
I'd have a great time.
[chuckles]
I'd buy myself some steamer trunks.
[laughs] No, I'm just--
Well, I would probably give a great deal of it away.
Yeah, I'd be a lot more generous
if I had an extra 17 mil.
Those, uh, cat places that they save cats
would have gold floors. [laughs]
[Jerry] I've always said, and I believe this,
there's a certain amount of money if I could get it,
I'd probably steal it.
The problem is, I don't know what that number is. [laughs]
I think maybe another house or something like that.
Um, but...
In the context of this conversation
I don't wanna think about $17 million.
Whether it was, you know, a small kingdom or not,
it was something that he had built.
It reflected his taste and his lifestyle
and now it was parceled out
to anyone who had $5.
So that part is sad.
[Darlene] I went to the estate sale.
I wanted to see what all was in there.
And seeing some of the stuff
and the pricing that was on it really upset me more.
And I didn't want stuff to remind me of it.
[Janet] Arguably, the whole thing was sad.
There are elements of humor in it
but it was the breakup of a family from within.
One of their own.
[Nick] Sandy Jenkins, it was very clear from the beginning
that he was not gonna fight this.
We approached Sandy's lawyer and we worked out a plea agreement.
16 million.
On a case like that, you look at the guidelines
and you start going backwards, how can we go down off the guidelines?
And cooperate. We want you to accept
some responsibility, and he did accept
responsibility for what he did.
He pled guilty to one count of mail fraud,
one count of being in a conspiracy with his wife
to spend the money that they had stolen
and one count of lying on the loan applications.
Facing up to 70 years in prison.
[Christine] She signed a factual statement
as part of her guilty plea.
She didn't admit that she knew it was embezzled
from the bakery but that she knew it was almost like a willful blindness
that she knew the money was bad.
So, that was the most we were able to get her to say.
[Nick] Both Sandy and Kay were set for sentencing
on the same day.
The courtroom was packed, as it usually was,
because the Collin Street Bakery people brought a lot of witnesses.
[Darlene] I remember going to court in Dallas
in a, uh, chauffeured, uh, van.
They had a TV screen on the back
and when we got in, it had a picture of Sandy and Kay sitting in their jet.
A group of us, we all went together.
For one thing, we were curious that, just what all has he done?
You know, what are they gonna do to him?
Uh, they both belong in prison.
[Janet] In court, you had a whole row of people from the bakery
who looked very serious and very solemn and a little nervous.
[Darlene] And then we saw Sandy the first time he came in
in shackles and an orange suit.
[Semetric] It was a crowded courtroom.
I was standing by the entry exit door
and Sandy walks right by me.
I was looking straight.
I did not look at him in his face.
Um, but just a very awkward moment.
I mean, it was so sad seeing him in shackles
and with, uh, jail, uh, issued glasses
because he was always very particular on what glasses he wore.
When he was at Collin Street he was, you know, well put together.
He took very good care of himself.
It's hard to see someone in that state.
I mean, you just feel sorry for someone.
I felt sorry for him.
It was really a weird feeling.
I guess I sort of wanted him
to look over and acknowledge us.
And of course, he didn't.
He didn't.
[Semetric] Kay was there,
um, and of course, um, she did not look at us.
I mean, no eye contact.
You wanted him and her
to get what they deserved for hurting the bakery
and for hurting each and every one of the employees.
[Hayden] He could've destroyed this business.
We wanted to see justice served.
[Bob] Every day we make cakes, pies and everything else.
In the case of cookies, we have what is called 'Cookie Court'.
Hope we got a good effort today.
We review the quality of the cookies.
And it's on a 1 to 100 scale.
- Cookie court. - [man] All right.
[Bob] It's unusual to get anything below 96.
So 96, 97.
Tell us what's your number.
I would say a 98.
[Bob] Once they start throwing out 98s, I start putting people on probation
saying, "Maybe their judgement ain't that good."
[man] What do you think?
98.
- [man 1] There you go, all right. - [man 2] 98!
[Darlene] At Sandy and Kay's sentencing, they allowed Bob to speak.
And Bob spoke about how he didn't only hurt
the maintenance and the bakery,
how he had hurt each and every one of us that was sitting there.
The, you know, sentencing hearings are always the most impactful.
Victims have an opportunity to, um, speak and be heard
to understand how that defendant's actions have impacted others.
[Bob] "To whom it may concern,
it is hard to describe the depth of betrayal one feels
when confronted by the theft by a couple, Sandy and Kay Jenkins,
who attend your father's funeral, then steal $50,000 from you the next day.
I respectfully urge the court to order stiff sentences
for both Sandy and Kay Jenkins.
Signed, Bob McNutt."
[news anchor] Just into the CBS 11 newsroom,
conviction on a felony embezzlement charge.
Sandy Jenkins, former executive of Collin Street Bakery
is now gonna spend 120 months in prison.
His wife, Kay, gets five years probation in this matter.
I mean, we were just in total disbelief.
[Bob] I was surprised that he got off with such a light sentence.
10 years for $17 million.
[Hayden] It wasn't near matching the amount of money
and pain and loss and everything that we all experienced because of him.
Kay didn't show any remorse and she just...
You know, just was nonchalant.
I remember all of us thinking how wrong that was.
We felt that, you know, although he committed the acts,
she was a major contributor,
a major supporter, um, to the crime that he committed.
I don't know how you sleep, but then that may be why he bought
the most expensive mattress in the world, full of horsehair
to sleep on, was probably 'cause they couldn't sleep with their conscience.
[Lesa] We used to wave at the jail when we'd go to Dallas,
us girls go have lunch and go shopping,
we'd wave at the-- "Hey Sandy!"
Because he was in that federal thing, jail house
that was right there off of 45.
They say that he went from wearing Italian leather shoes
to where he was begging people to send him money
so he could get socks and things from the commissary in the jailhouse.
How about that?
I don't know if he would regret it or not.
He had a good haul over those years.
He had fun.
I don't think being in prison would be much fun.
So, um, that would be the only downside
that he missed all his jewelry.
He was just a mere prisoner after that time.
Nothing special.
So...
That wasn't a place Sandy was supposed to be.
I can hardly imagine picturing him in a jail cell.
I mean, did he grab 'em with his hands and look out
and wish I could see daylight or...
He just, he had to pay the price.
[Janet] I think, for him the humiliation may have been worse
than the prison sentence.
Because his ego had been built up for those years
and years of spending lavishly and entertaining lavishly
and being that center of attention.
So many of his friends turned their backs on him.
He didn't have people in that courtroom
saying "Yay, Sandy" or you know, "We got you buddy"
or "We're praying for you."
He didn't seem to have that.
He did not seem to have supporters who were still there later on.
[Goolsby] Destroyed his, his family.
I don't know what's happened to it. His life.
[Semetric] At the end of the day, all his friends were gone,
family gone and the people that he supported the most, you know, with the money
that he was taking from Collin Street, you know,
they weren't there and they forsook him.
[Goolsby] There wasn't anything waiting on him outside.
Everything went back to zero.
And he had forgotten how to play the piano
and he had forgotten he didn't have a mother and father pushing him.
[Bob] I think of Sandy as such a sad person.
I guess, in the end, greed's not worth it, is it?
Keep your fingers out of the cookie jar.
That's it.
Be honest.
Be a good citizen.
[Semetric] And if you're looking for happiness in money you're never going to find it.
Money only personifies your character.
[Bob] We're lucky to have survived.
[Darlene] It's a big hole to climb out of.
We really went through everything with a fine tooth comb
to retrieve as much as we could in terms of
the watches and items of jewelry and vehicles.
Unfortunately, as is often the case with fraud like this,
much of the luxury spending and excessive spending occurs on travel
and just consumption and there was a lot
of gluttonous consumption in this case.
Typically, in embezzlement cases, a lot of money is just spent.
We knew we weren't gonna find $17 million worth of stuff.
We recovered probably close to $5 million.
[Bob] Sandy's theft, you know, it certainly affected me
from the standpoint as a leader of the business.
You can't ever not be on your toes.
But I think we've learned kind of the determination to get it back.
It's something that, you know, you've gotta overcome this
in order to come out the other side, we'll be better.
[Jerry] The bakery is a, has been a real successful story.
What they've accomplished is the fruitcake capital of the world
in Corsicana, Texas.
It's gonna take a while, but it's...
I think under Bob's guidance, they'll, they'll eventually get back.
[Semetric] We wanna see Collin Street be here another 125 years, you know?
Maybe one day, I'll be the Jerry.
I got this letter in December of 2017.
[reading letter] "Dear Bob, as I've reflected lately about my crime,
it has occurred to me that I have really never asked for your forgiveness.
I am truly sorry for taking money from the bakery.
For whatever reasons I may have had.
There was really no excuse on my part.
I could've done the right thing and just quit.
My entire life of being an honest person was destroyed.
I really had nothing against you personally or the bakery.
I actually loved the business and had great respect for you.
Please forgive me for anything I did that hurt the bakery, you personally or your family.
I hope your business is good this year.
God bless you, Sandy Jenkins."
December 17, 2017.
I, I think he was sincere.
I don't hold bitterness in my heart, so...
I, uh, you know, I take him at his word for his...
his apology.
I hope the letter lifted a burden from him a little bit.
One of the few times I talked to him as it was over,
he's talking about, "Well, you know, I've got to get out of here
so I can start getting you paid back."
I didn't really think his prospects were gonna be that good but...
You know, at least the sentiment was there.
[producer] Do you remember where you were,
how you learned that Sandy had committed suicide?
Uh...
Just now.
I didn't know that he committed suicide.
[sighs] Well.
[Goolsby] He was so close to being out
and having that behind him.
It was just more than, more than he could take maybe.
[Bob] Before he committed suicide,
he called me from jail.
[Sandy] I am sorry for what I did.
I had nothing against you or the bakery.
It was something I couldn't get out of.
[Bob] Okay.
[Sandy] Look, whether you believe me or not, I mean, it's the truth.
I think he was sorry.
[Goolsby] I did not for one time in my life
have my mother to tell me
"Randy, you should go visit Sandy."
He doesn't, uh, he doesn't have a lot of friends where he is.
It was not a big long trip to go see Sandy
and, and I regret that I didn't.
I missed an opportunity, uh, to really know who Sandy was.
Maybe I would have learned something I could've passed on to others.
There's gonna be that little cupcake,
that little fruitcake over there
that just doesn't quite fit in.
But just because he has nice clothes and wears
those horn-rimmed glasses
doesn't mean that you shouldn't befriend him.
The guy that doesn't look like he fits in,
he may just need a friend.
He may need somebody to talk to.
Look out for the guy that can't look out for himself, you know?
For Sandy, maybe it would've swayed him early on.
Can a friend do that? I think friends can.
Uh, they can send you on a, on a new journey.
[Bob] When this show airs,
people will say "Wow, you know, I never heard of something like that."
But they also say,
"I wonder, how can a fruitcake be that good?
Maybe I need to order one."
Fruitcake is great.
Very sweet. Uh, very nutty.
I forgot how much I liked it.
Mm.
I don't use a fork, gotta use your fingers.
Oh, that's good.
Mm-hmm!
I'd say it's my first time to try it.
Now I need something to drink.
So there's no coffee is what you're telling me?
Nice little fruitcake.
[Bob] You know there's no way they found all of it, either, right?
I mean, I know there's... where it is... I know.
Somebody will find it.
"Oh, look."