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 Headlines

in Sports

This week’s top sports shots

AP564917773040_12

A look at some of the biggest plays and best photos in sports this week.

in Sports

This weekend’s sports schedule

playball

A look at some of this weekend's biggest sporting events.

in Music

This week’s top rock tracks

foofighters

LISTEN: This week's top rock songs, according to the latest Billboard chart.

in Music

Ozzy Osbourne to undergo surgery

British musicians Ozzy Osbourne of Black Sabbath, arrives at the Classic Rock Roll of Honour awards 2013 at the Camden Roundhouse in north London, Thursday, Nov. 14, 2013.

Ozzy Osbourne has cancelled his upcoming Ozzfiesta event in Mexico to undergo surgery.

in Sports

Coyotes broadcaster charged with assault in casino fight

Phoenix Coyotes defenseman Nick Boynton warms up before facing the Colorado Avalanche in an NHL hockey game in Denver on Monday, Feb. 4, 2008.

Nick Boynton, an Arizona Coyotes broadcaster and former NHL defensemen, faces charges after biting an officer at a Buffalo casino.