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

30 mins ago in Trending, Viral Videos

TODAY’S MUST SEE: The ‘Force Awakens’ a 2-year-old

Fresh
15-overlay-2

Young Sebastian is about to get one heck of a wake-up call.

24 hours ago in Music

‘You can’t always get what you want,’ Stones tell Trump

rollingstonesREUTERS

The Rolling Stones told Republican presidential hopeful Donald Trump on Wednesday to stop using the band's music for his campaign after artists such as Adele and R.E.M. made the same request.

1 day ago in Viral Videos

‘Game of Thrones’ inspired Mother’s Day gift will be a hit

Updated
24-overlay-1

Still looking for a last minute gift for mom? Jimmy Kimmel has got you covered.

2 days ago in Music

Roger Daltrey gets his own bubbly

rogerdaltrey386399512082

The Who frontman is releasing his own brand of champagne.

2 days ago in Music

Lennon’s lyrics, Cobain’s letter and Gaga’s piano up for auction

johnlennon296387483243

John Lennon's handwritten lyrics, Lady Gaga's first piano and an angry note from Kurt Cobain discussing the possibility of disbanding Nirvana after an unflattering magazine article are among the top items being offered at an upcoming auction.