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 Entertainment

The best April Fools’ Day pranks by companies

pacmanmaps

Google Panda, the Samsung smart knife, and more: Because even corporate America likes to pull one over on us.

in Music

Kenny Rogers plans another ‘farewell’ tour

kennyrogers

The country crooner is saying goodbye to another country - planning his final tour of South Africa.

in Music, Entertainment

Rihanna isn’t dating Leonardo DiCaprio … she swears

rihanna

The "Diamonds" hitmaker and the actor have been spotted at several events together, but she swears she's "too busy" to date.

in Sports, Viral Videos

WATCH: Puppies predict the Final Four

16-overlay

It's a totally unscientific, but completely adorable, way to predict the winner of the NCAA Men's Basketball Championship.

in Music

Jo Dee Messina pens mom-centered advice book

jodeemessina

The singer has teamed up with the author of the popular "Chicken Soup for the Soul" series.