Thursday, October 3, 2013

Ty Warner, Beanie Babies Creator, Pleads Guilty To Tax Evasion

The billionaire who created Beanie Babies has pleaded guilty to a tax evasion charge.

H. Ty Warner broke down crying in court and apologized for hiding millions of dollars in a Swiss bank account. He removed his glasses and sought to regain his composure before a federal judge in Chicago. 

He added, "There's no excuse for my actions." 

Judge Charles Kocoras stopped Warner and told him "there will be time for you to bare your soul" at his Jan. 15 sentencing. 

In court, Warner acknowledged that he told no one of his foreign bank accounts, not even his accountants. Warner even concealed his name from one account by registering it as "Molani Foundation," a "sham company," prosecutors said in court. 

His lawyer said he'll also pay $53.5 million in civil penalties for not disclosing the existence of a foreign bank account.

The 69-year-old also admitted he failed to pay around $5 million in taxes due over 11 years. Tax evasion carries a maximum five-year prison term.

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