Edina Toy Company Co-Owner Gets 1-Yr. Sentence
The former co-owner of Edina toy company Princess Soft Toys, Inc., was sentenced Wednesday to one year and one day in federal prison for failing to pay federal taxes.
Kim Robert Calkins admitted that between 2008 and 2010, he failed to pay any employment taxes to the Internal Revenue Services. Calkins in September 26, 2012 pleaded guilty to failing to pay $852,361 in taxes, despite receiving regular notices that the employment taxes were due.
Calkins co-owned the toy company with his wife, Sandra Lee Calkins, who was sentenced in Febraury 2012 to five-and-a-half years in federal prison for defrauding Central Bank and 42 investors out of about $9 million.
Sandra Calkins pleaded guilty to the bank fraud in 2011, admitting that between January 2008 and March 2010, she falsified financial statements regarding the company in order to renew a $3.25 million line of credit at Central Bank. After she renewed her credit line, she drew more than $3.5 million from it. As a result, Central Bank suffered a loss of about $1.6 million.
Sandra Calkins also admitted to coaxing investors into loaning money to Princess Soft Toys, lying about its financial standing. The total losses to these investors exceeded $7 million.