Toy Company Owner Pleads Guilty to Fraud
The owner of Princess Soft Toys, Inc., on Thursday pleaded guilty to bank fraud, according to Minnesota's U.S. Attorney's office.
Sandra Calkins, a 67-year-old woman from Eden Prairie, was charged for her crime late last month. She admitted in her plea agreement that between January 2008 and March 2010, she lied on her company's financial statements in order to renew a $3.25 million line of credit from Stillwater-based Central Bank. Because she falsified statements pertaining to her company's revenue and assets, the credit was made available.
According to the U.S. Attorney's office, Central Bank lost about $1 million as a result of the fraud.
Calkins also admitted to coaxing at least 13 investors into loaning money to her company by lying about its financial standing. The investors together lost at least $562,000, the U.S. Attorney's office said.
Calkins faces up to 30 years in prison. Her sentence will be determined at a future hearing that hasn't yet been scheduled.