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 Sports

AP Source: Pacers give Monta Ellis 4 years, $44 million

Fresh
Dallas Mavericks point guard Monta Ellis warms up in front of an advertisement paid for by The Indiana Economic Development Corp. before an NBA preseason basketball game in Indianapolis, Wednesday, Oct. 16, 2013. The IEDC has signed a deal with the Pacers for sponsoring the basketball court inside Bankers Life Fieldhouse. (AP Photo/AJ Mast)

A person with direct knowledge of the situation tells The Associated Press that Ellis has agreed to terms with the Pacers on a four-year deal worth $44 million. The deal includes a player option for the final year.

in Sports

Rangers’ Martin St. Louis announces retirement

Fresh
In this March 4, 2015, file photo, New York Rangers right wing Martin St. Louis (26) shoots against the Detroit Red Wings in the third period of an NHL hockey game in Detroit. Rangers forward Martin St. Louis is retiring after 16 NHL seasons, seven All Star selections and one Stanley Cup with the Tampa Bay Lightning. St. Louis made the announcement Thursday, July 2, 2015, roughly a month after helping the Rangers reach the Eastern Conference finals, where they lost to the Lightning in seven games. (AP Photo/Paul Sancya, File)

The 40-year-old St. Louis was uncertain whether he would return for another season after the Rangers were eliminated, but it was clear that New York was not going to bring him back.

in Entertainment

Filmmakers bet on ‘Monopoly’ movie

monopoly

SANTA MONICA, Calif. (AP) — “Monopoly” is going Hollywood. Lionsgate says it will turn the classic board game into a…

in Sports

Wimbledon: Nadal stunned by Dustin Brown in 2nd round

Fresh
Dustin Brown of Germany, gestures after defeating Rafael Nadal of Spain, during their singles match, at the All England Lawn Tennis Championships in Wimbledon, London, Thursday July 2, 2015. (AP Photo/Pavel Golovkin)

Dustin Brown, a German of Jamaican heritage with a clever touch and a throwback serve-and-volley game, beat Nadal 7-5, 3-6, 6-4, 6-4 on Centre Court on Thursday.

in Music

‘The Boss’ joins a Beach Boy onstage

14-overlay2

East met West as the Jersey Shore musician jammed with California legend Brian Wilson.

Bellingham Traffic