News

‘Beanie Babies’ creator pays $53M tax penalty

‘Beanie Babies’ creator pays $53M tax penalty

Photo: Associated Press

Ty Warner
Ty Warner, the creator of Beanie Babies, has been charged with tax evasion.

CHICAGO (AP) — The creator of Beanie Babies stuffed animals has been charged with federal tax evasion for allegedly failing to report income earned in a secret offshore account, and he’s agreed to pay a more than $53 million penalty.

Prosecutors in Chicago announced charges Wednesday against H. Ty Warner. His attorney issued a statement saying the 69-year-old would plead guilty and pay a penalty of more than $53 million.

Defense lawyer Gregory Scandaglia called the matter an “unfortunate situation” that Warner “has been trying to resolve for several years.”

Warner lives suburban Chicago and is the sole owner of TY Inc. The company designs and sells plush toy animals, including Beanie Babies.

According to charging documents, Warner maintained a secret offshore account with the Switzerland-based financial services company, UBS, starting in 1996.

Recent Headlines

29 mins ago in Entertainment

OPENING WEEKEND: ‘Captain America: Civil War’ is finally here

Fresh
10-overlay

Here's a look at some of the films set to open this weekend.

34 mins ago in National

Making headlines this week

Fresh
A member of the NATO parachute demonstration team lands during a change of command ceremony at NATO military headquarters in Mons, southern Belgium on Wednesday May 4, 2016. U.S. Army General Curtis  M. Scaparrotti was installed as NATO's 18th supreme allied commander Europe (SACEUR). The commander, by tradition an American general or admiral, is responsible for the overall direction and conduct of NATO's global military operations. (AP Photo/Geert Vanden Wijngaert)

A look back at some of the biggest stories this week and the headlines you may have missed.

37 mins ago in Lifestyle, National

Anti-hunger group uses fake app to fool, educate

Fresh
18-overlay

The U.S. Department of Agriculture estimates 14 percent of Americans, or more than 17 million people, are what is called food insecure, meaning at times of the year, they are uncertain of being able to acquire enough food for their household.