Government says the spouse of convicted fraudster Sandra Lee Calkins failed to pay employment taxes.
A second owner of Princess Soft Toys in Edina appears headed for some hard time.
Kim Robert Calkins, 68, of Eden Prairie, was charged Wednesday in a Minneapolis federal court with failing to pay more than $68,000 in employment taxes. Calkins was an owner-operator of the toy company along with his wife, Sandra Lee Calkins, also 68. She pleaded guilty last year to defrauding a bank and investors in the business out of more than $1.5 million and was sentenced by U.S. District Judge Paul Magnuson to 5 1/2 years in prison.
Kim Calkins was charged by prosecutors in a "criminal information" rather than an indictment, a procedure that usually means a plea agreement is coming. Prosecutors say he was responsible for paying employment taxes for the company's workers but failed to account for and pay $68,635.85.
Sandra Calkins admitted to falsifying company financial statements to renew a $3.25 million line of credit at Central Bank. The bank lost about $1 million, according to her plea agreement. She also admitted to misleading 13 people who invested in her company or lent it money between January 2008 and 2010, leading to collective losses exceeding $562,000, her agreement says.
Princess Soft Toys made plush stuffed animals for more than 40 years. It was acquired by Melissa and Doug, a toymaker based in Wilton, Conn., more than a year ago.
Dan Browning • 612-673-4493