Tags: beanie | babies | creator | guilty

Tearful Beanie Babies Creator Pleads Guilty to Tax Evasion

Image: Tearful Beanie Babies Creator Pleads Guilty to Tax Evasion

Wednesday, 02 Oct 2013 03:48 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

The billionaire who created Beanie Babies broke down crying in court Wednesday as he pleaded guilty to one count of tax evasion for hiding $25 million of income in secret Swiss bank accounts.

H. Ty Warner, 69, also apologized as he stood before a federal judge in Chicago, removing his tortoiseshell glasses and wiping away tears as he struggled to regain his composure.

New Medicare Warning: Obamacare Rule Changes Coming  

"I have so much to be thankful for," said the suburban Chicago businessman, his voice breaking as he cited his stuffed-toy company, TY Inc. "There is no excuse for my actions."

The toymaker's 18-page plea deal says guidelines call for a prison term of around four years — a calculation that makes it likely he'll serve time behind bars. It also requires he pay a $53 million civil penalty.

As Judge Charles Kocoras began questioning Warner about his intention to plead guilty, Warner cupped his hand over his ear, asking the judge if he could speak up. "My hearing isn't so good," Warner said.

When asked if he understood that the potential penalties included prison, Warner replied quietly, "Yes, sir."

Beanie Babies first appeared in the '90s, triggering a craze for the plush toys fashioned after bears and other animals. An explosion of sales made Warner rich; Forbes recently put his net worth at $2.6 billion.

As an emotional Warner continued to apologize during Wednesday's hearing, his head bowed over a courtroom podium, before Kocoras finally stopped him, telling him he could elaborate at his Jan. 15 sentencing.

"There will be time for you to bare your soul (later)," the judge said.

New Medicare Warning: Obamacare Rule Changes Coming

Warner admitted he evaded paying $5 million in federal taxes over an 11-year period by setting up the secret accounts. At one point, he was concealing as much as $107 million, prosecutors said.


© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Diplomats Owe NYC $16M in Unpaid Parking Tickets

Tuesday, 23 Sep 2014 07:38 AM

New York City is owed over $16 million in unpaid parking tickets issued to foreign diplomatic vehicles.The Department of . . .

Henry Paulson: Climate Change Biggest Risk to Economy

Tuesday, 23 Sep 2014 07:14 AM

Former treasury secretary Henry Paulson said that the single biggest risk that exists to the economy today is climate  . . .

Judge Orders Extra Voting Help for Alaska Natives

Monday, 22 Sep 2014 20:37 PM

A federal judge on Monday ordered the state to take additional steps to provide voting materials to Alaska Native voters . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved