H. Ty Warner, the creator of Beanie Babies, received his sentence for alleged tax evasion in a Chicago federal court last month. On Tuesday, January 14, 2014, Warner learned he would not be serving jail time for the tax evasion charge to which he had already pleaded guilty.
More About the Sentence
Warner faced a possible five years in jail for allegedly hiding some of his income and filing false tax returns for 11 years. The prosecution was reportedly asking the judge to sentence him to at least one year in jail. However, U.S. District Judge Charles Kocoras instead decided to sentence him to two years of probation.
At the sentencing hearing, Warner reportedly expressed “shame and embarrassment” for his actions.
Kocoras praised the billionaire’s charitable giving and said "Society will be better served by allowing him to continue his good works." He added that Warner had already paid a high price in "public humiliation" and "private torment."
In addition to probation, Warner will have to do 500 hours of community service at Chicago high schools. When he pleaded guilty to the tax evasion charges, he agreed to pay about $27 million in back taxes and interest and approximately $53 million for a civil penalty. This civil penalty is one of the largest tax penalties ever imposed by the IRS.
If you want to learn more, we encourage you to read our recent news article that details the charges against Warner. We also invite you to contact us directly if you have any questions about your own rights.