The tax case against the founder of Beanie Babies, Ty Warner, continues as prosecutors challenge the lenient probation sentence handed down after Warner pleaded guilty to one count of tax evasion.
Prosecutors alleged that Warner failed to report $24 million by hiding money in two Swiss offshore bank accounts, which allowed him to avoid paying $5.5 million in federal taxes. Sentencing guidelines allowed for prison sentence of up to 57 months, but prosecutors pushed for at least one year in prison to deter others.
Warner’s defense cited to the amnesty program that allowed many with foreign accounts to avoid criminal charges. Even when charged criminally, more than half of those convicted only received probation sentences. Warner had also paid a civil penalty and back taxes plus interest.