DALLAS — A federal grand jury returned an indictment late Thursday charging Sandy Jenkins, 64, of Corsicana, Texas, with 10 counts of mail fraud stemming from his alleged embezzlement of approximately $16 million from his former employer, the Collin Street Bakery (Bakery) in Corsicana. Friday’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Jenkins served as the Corporate Controller for the Bakery from February 1998 to June 21, 2013. On June 21, 2013, Jenkins was terminated after the Bakery discovered the alleged fraud.

In particular, according to documents filed in the case, Jenkins caused Bakery checks to be written to his personal creditors and then manipulated the Bakery’s computerized accounting system to show that the checks had been voided. To keep the Bakery’s books in balance and further disguise his fraudulent activity, Jenkins created checks in the bakery’s accounting system purporting to go to an approved vendor in the same amounts as the checks to his personal creditors. The checks to Jenkins’s personal creditors were used to bankroll a lavish lifestyle that included a house in Santa Fe, N.M., 43 luxury automobiles, frequent travel on private planes and a watch and jewelry collection worth approximately $3 million.

The indictment alleges that between 2005 and 2013, Jenkins caused approximately 888 fraudulent checks to be written on the Bakery’s account and mailed to Jenkins’s personal creditors, resulting in losses to the Bakery of approximately $16,649,786.00.

A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty.

If convicted, however, Jenkins, who has been in custody since his arrest last month on a related federal criminal complaint, faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine, per count.

The indictment includes a forfeiture allegation that would require Jenkins to forfeit not only the total proceeds derived from the offense ($16,649,786.00), but also property including: real estate in Corsicana and Santa Fe; vehicles, including a Mercedes, a Lexus, a GMC Denali and a BMW; approximately 60 high-end watches from vendors including Frank Muller, Rolex, Concord, Ebel, Breitling, Patek Philippe, Corum, Chopard and Breguet; jewelry including approximately 50 necklaces, 35 bracelets, 57 rings and 26 earrings; coins, including collectable coins, silver dollars and gold coins; one gold bar; a Steinway piano; approximately 596 bottles of wine; six firearms; $6,598.00 in cash; other luxury items including 14 furs, 11 paintings, 93 designer handbags; and various electronic and computer equipment.

The investigation regarding assets is ongoing. Restitution to the victim is mandatory upon conviction in this case. The United States has various civil and criminal forfeiture and restitution collection remedies at its disposal, and makes its best efforts to maximize recovery for victims of crime.

As a legal and practical matter, the seizure and liquidation of assets may be a lengthy process due to various laws that affect the rights of third parties.

The investigation is being conducted by the FBI. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution and Assistant U.S. Attorney Melissa Childs is handling the forfeiture.