IRS, Just for Fun

That’s 595,699 Fruitcakes!

If you are buying Regular Deluxe Fruitcakes, that is.  This week, a Federal grand jury indicted on 10 counts of mail fraud Sandy Jenkins, the former longtime corporate controller for Collin Street Bakery, the Corsicana, Texas company famous for its mail order fruitcakes.   He is accused of embezzling “approximately $16,649,786.91” between 2005 and 2013.  That is almost $2,000,000 per year!   Seems like that is enough money to have been noticed by someone.   Maybe the owners thought the run-up in price of pecans was a lot worse than it really was.  (Indeed, his apparent demise occurred shortly after the 2012 crop prices tumbled!)

Jenkins is accused of taking advantage of a lapse (or maybe a complete void) in internal controls to write checks to his creditors and himself.  And, wow, he must have had some creditors.  Investigators were able to identify a lot of property that most controllers could not afford.  Among other goodies:  a house in Santa Fe; four luxury vehicles; about 60 luxury men’s watches; about 50 necklaces; a Steinway Model B piano (big money, let me tell you!); 596 bottles of wine (that’s not so much, I think); 14 furs; 93 designer handbags.  The list goes on.

Wasn’t anyone suspicious?  What do you think when your controller walks in with 60 luxury watches on his arm after parking his Mercedes, Lexus, BMW or GMC Denali in the employee parking lot?  Unless he had 14 girlfriends, seems like his lady might raise an eyebrow when he buys her a really nice necklace every two months and a couple of furs each year.  Or how about a new designer handbag every month?

Of course, an indictment does not establish guilt.  However, it seems like the Feds have the goods on Mr. Jenkins.  Unless he was meticulously keeping records and reporting “approximately $16,649,786.91” on his income tax returns, his troubles are just starting.  The Internal Revenuers should be right behind the Postal Inspectors.  Maybe someone will send Sandy a fruitcake for Christmas at his next long-term residence, which figures to be owned by the Federal government.

-VKM