News

No prison time for Beanie Babies creator in tax evasion

No prison time for Beanie Babies creator in tax evasion

BEANIE BAD GUY: The billionaire creator of Beanie Babies, Ty Warner, could face up to five years in prison when he is sentenced in Chicago federal court on Tuesday on his guilty plea for tax evasion. Photo: Associated Press

Ty Warner
In this Feb 16, 2003 file photo, Ty Warner, Beanie Baby creator arrives at the Toy Fair to sign “Decade,” the10th anniversary baby bear in New York. Warner has been charged with federal tax evasion for allegedly failing to report income he earned in a secret offshore financial account. (AP Photo/Louis Lanzano)

By Mary Wisniewski

CHICAGO (Reuters) – The billionaire creator of Beanie Babies, Ty Warner, will serve two years of probation, including mentoring high school students, following his guilty plea on a tax evasion charge, but no jail time, a federal judge ruled on Tuesday.

Warner, 69, who pleaded guilty in October, told U.S. District Court Judge Charles Kocoras in Chicago that he was sorry, and called it the biggest mistake of his life. Warner already had agreed to pay a civil penalty of nearly $53.6 million.

Kocoras cited Warner’s many acts of charity in imposing two years’ probation as requested by his attorneys, rather than the prison term sought by prosecutors.

“Society will be best served by allowing him to continue his good works,” Kocoras said.

Warner, who in 2013 was ranked as the 209th richest American by Forbes, “went to great lengths” to hide from his accountants and the Internal Revenue Service more than $3.1 million in foreign income generated in a secret Swiss bank account, according to the U.S. Attorney’s office in Chicago.

Beanie Babies, small plush toys sold for $5 to $7, have been popular with collectors. At their peak of popularity in the 1990s, some collectors would pay hundreds of dollars for a rare character on the resale market, according to press accounts.

Warner’s net worth was listed as $2.6 billion in 2013, according to Forbes.

(Reporting by Mary Wisniewski; Editing by Ken Wills and Gunna Dickson)

Recent Headlines

in Sports, Viral Videos

John Oliver explains English soccer

20-overlay

The "Last Week Tonight" host explains the class system of English soccer to David Letterman.

in Weird

‘Caffeinated’ underwear don’t pack a punch

coffee

Shapewear that promised to help you slim down was a sham.

in Music

Malcolm Young’s nephew to replace him in AC/DC

Malcolm Young, Cliff Williams, Angus Young and Brian Johnson of AC/DC
Premiere of 'AC/DC - Live at River Plate' at Hammersmith Apollo - Arrivals London, England - 06.05.11

Rockers AC/DC are planning to keep it in the family when it comes to replacing guitarist Malcolm Young in the line-up.

in Music

Jimmy Page wants to form new group

jimmypage

The rocker has given up dreams of reuniting Led Zeppelin and wants to form a new band for a career-spanning tour.

in Weird

Fake cops make off with real pot

FILE - This Feb. 1, 2011 file photo shows medical marijuana clone plants at a medical marijuana dispensary in Oakland, Calif. Despite new rules that say only about 140 medical marijuana dispensaries are eligible to stay open, more than 450 have filed renewals to pay Los Angeles business taxes this year.

Three armed men allegedly dressed as police to steal medical marijuana plants from a licensed grower.