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 Local Sports

Oregon picked to win Pac-12 in preseason poll

Fresh
pac 12 logo

The Washington Huskies and Washington State Cougars were picked to finish 3rd and 5th respectively in the North Division.

in Sports

AP source: Chiefs, Charles reach 2-year deal

Fresh
Kansas City Chiefs running back Jamaal Charles (25) runs the ball against the Denver Broncos in the second quarter of an NFL football game, Sunday, Nov. 17, 2013, in Denver.

The six-year NFL veteran ran for 1,287 yards and 12 touchdowns last year as the Chiefs reached the playoffs.

in National

GM recalls 717K vehicles, not for ignition switches

generalmotors

General Motors Co. announced six recalls covering more than 700,000 vehicles in the United States for varying reasons.

in Local Sports

Seattle’s Sidney Rice announces his retirement

Seattle Seahawks wide receiver Sidney Rice looks for the call against the Arizona Cardinals during the first half of an NFL football game, Thursday, Oct. 17, 2013, in Glendale, Ariz.

Seahawks wide receiver Sidney Rice is retiring from the NFL after an injury-plagued career that included issues with concussions

in National

Senate panel approves Veterans Affairs nominee

mcdonald

Bob McDonald, President Obama's choice to run the VA, looks set for an easy Senate confirmation.