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, Sports, Viral Videos

WATCH: Leaked Super Bowl commercials

25-overlay7

A 30-second commercial on Super Sunday will cost $4.5 million, but will it be money well spent?

in Entertainment

‘Birdman’ wins big at SAG Awards in march toward Oscars

SAG

The satirical film won top honors from Hollywood's actors in an important show of support for its march toward the best picture Oscar.

in Sports, Trending, Viral Videos

TODAY’S MUST SEE: ‘SNL’ takes on Tom Brady and DeflateGate

13-overlay2

The New England Patriots QB reminds people that he is not a "science computer" and had nothing to do with deflating footballs.

in Entertainment

Today in entertainment history: Jan. 26

ellen-degeneres

A look back at some of Hollywood's most memorable headlines.

in Entertainment

This weekend in entertainment history

In this film publicity image released by 20th Century Fox, the character Neytiri, voiced by Zoe Saldana, left, and the character Jake, voiced by Sam Worthington are shown in a scene from, "Avatar." The film was nominated Tuesday, Feb. 2, 2010 for an Oscar for best picture. The 82nd Academy Awards will be presented on March 7.

A look back on some of Hollywood's most notable headlines.