Creator of Beanie Babies Receives Light Sentence in Tax Evasion Case

The man who created the popular collectible Beanie Babies has received probation in his tax evasion case.

Ty Warner, 69, managed to avoid going to jail on Monday, January 13th. Reportedly, Warner pleaded guilty in October 2013 to the tax evasion charges, after federal investigators discovered that he had avoided paying taxes on $25 million in income by hiding the money in a Swiss bank account.

Warner agreed in October to pay $53.6 million as a civil penalty for his tax evasion, which was half the value of his Swiss bank account at the height of his wealth. So far, he has paid an additional $16 million in back taxes. He also said that tax evasion was the biggest mistake of his life, and he was sorry for his crimes.

US District Judge Charles Korocas decided to sentence Warner to 2 years’ probation, rather than prison, largely because the billionaire creator engaged in charitable works. During the hearing, Judge Korocas read aloud from dozens of letters supporting Warner.

“Warner’s private acts of kindness, benevolence and generosity are overwhelming,” Kocoras said. “Society will be best served by allowing him to continue his good works.”

Korocas also ordered Warner to perform 500 hours of community service.

Warner could have been sentenced to up to five years in prison, and federal prosecutors called for the Beanie Babies founder to spend 46 to 57 months in jail.

Federal Tax Evasion Charges in South Carolina

One mission of The Internal Revenue Service (IRS) is to detect and prosecute tax fraud and tax evasion.

If you are under investigation, or have been arrested, for tax evasion your personal and professional livelihood are at stake.  The IRS can:

• seize your assets,
• freeze your bank accounts,
• shut down your business, and
• garnish your wages.

A conviction for tax  evasion can result in jail time and staggering fines and penalties.  If you are under investigation, or have been arrested for federal tax evasion, is it critical that you contact an experienced federal tax attorney to help defend your case.  Don’t let a simple mistake made in good faith result in possible prison time or subject you to additional penalties.  We will fight aggressively to have your charges reduced or even dismissed.

Common IRS allegations include:

• failure to pay, or under payment of, personal or business income taxes,
• failure to file personal or business taxes,
• misrepresentation of income,
• supporting deductions with fraudulent documentation,
• Reporting income paid to someone else,
• Hiding assets in an offshore bank account,
• Claiming deductions you are not eligible for, and
• Money laundering

The Strom Law Firm Can Help with Federal Tax Evasion Charges

Centrally located in Columbia, South Carolina, our firm has experience in dealing with civil and criminal IRS investigations.  Founded by former U.S. Attorney and assistant solicitor, Pete Strom, our experienced criminal defense attorneys include a former public defender, and a former Assistant Attorney General and Richland County Assistant Solicitor, as well as a tax lawyer familiar with IRS investigations. If you face tax evasion or tax fraud charges, contact the IRS tax defense team at the Strom Law Firm, LLC today for a free, confidential consultation to discuss the facts of your case. 803.252.4800