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)

Latest Stories

1 hour ago in Music

Led Zeppelin back with ‘Whole Lotta’ unreleased tunes

Fresh
led

The rock legends will publish a number of unreleased tracks, including an alternate version of "Whole Lotta Love."

1 hour ago in Trending, Viral Videos

TODAY’S MUST SEE: Brian Williams raps ‘Gin & Juice’

Fresh
birna

After he leaves the "NBC Nightly News," Brian Williams might have a future in music.

1 hour ago in Entertainment

‘Ice Road Truckers’ star accused of kidnapping, beating Vegas woman

Fresh
iceroad

A star of the reality TV show is due in court in Las Vegas to face first degree kidnapping, extortion and coercion charges.