Beanie Babies billionaire Ty Warner enters emotional guilty plea

[alp227]

Source: Chicago Tribune

Suburban Chicago businessman Ty Warner, who became a billionaire after creating Beanie Babies collectibles, entered a guilty plea Wedensday morning for tax evasion, apologizing in a choked-up voice and telling a U.S. judge that he knew his tax forms weren't accurate.

His plea was expected. Last month his lawyer and federal authorities said he would plead guilty. His lawyer said he'll pay more than $50 million in civil penalties for not disclosing a foreign bank account. And Warner faces up to five years in prison. His sentencing is set for January.

Prosecutors say he failed to report $24.4 million in income from 1999 to 2007 and failed to pay taxes about $5 million.

Warner acknowledged that he told no one of his Swiss bank accounts, not even his accountants.

Read more: http://www.chicagotribune.com/business/breaking/chi-beanie-babies-ty-warner-guilty-20131002,0,4366750.story

[Aristus]

1. He deserves prison just for starting that idiotic Beanie Babies fad.

Every time someone told me they were going to build their retirement on this 'great investment!', I rolled my eyes.

I wonder how many of those 'great investments' are taking up space in a landfill somewhere...

[Link Speed]

5. It was a sham

He had a crew of people driving to small towns, going into mom-and-pop gift stores. They would ask if there were any Emma the Elephants (i.e.) and exclaim, "I'll pay $25 for every one you have!". Then the local paper would get word of it and the thing spread like wildfire. This went on for a long, long time and victimized those most vulnerable.

Everyone in the industry was aware of it, but those profits were like crack. At Toy Fair in NYC retailers would actually stand in line to get into the booth. There were UPS drivers who went to prison for diverting shipments of Beanie Babies.

Ty had this cute line about the profits going to children in need. Yeah, right, like the Four Seasons in Manhattan for which Warner paid $475 million cash.

I hope he rots in prison.

[7962]

11. I remember a guy years ago who had all of them. He was offered 1/2 million and turned it down

He thought they were "worth more". Wonder what he ended up selling them for?

[fitman]

2. He only choked up in court because he was caught..

[LeftofObama]

3. If I had that kind of money

I would send my tax money every year in a Hallmark card praising the IRS! How much is enough to these people?

[Bigredhunk]

4. No kidding

The more they make, the more it bothers them paying taxes. You're a billionaire. You're going to BE a billionaire after paying your taxes. Pay your damn taxes.

Rich people whine about $$ more than poor people do.

[valerief]

13. It's true. The richer they are, the cheaper they are. nt

[Myrina]

6. Seriously? This stooge gets 5 years and $50 Mil? And Wall Street CEO's get what?

You can bet dollars to donuts their tax returns (if they even bother to file them) are complete fabrications.
And they're not going to prison because, why, again?

[Dawson Leery]

7. That would explain the beenie baby commemorating Ronnie Reagan.

http://www.prnewswire.com/news-releases/ty-to-commemorate-commissioning-of-uss-ronald-reagan-cvn-76-with-the-creation-of-ronnietm-the-bear-beanie-babyr-70750897.html

[KansDem]

8. Seize his assets...

They would if he were caught smoking a doobie

[Skittles]

9. a friend inherited hundreds of beanie babies and she gave them to me

I mailed them to soldiers in Iraq and they took them to a school they were helping to fix up - a letter said, "We gave one beanie baby to one little girl and we were overrun like a pack of wild dogs." I often wonder what the parents thought about some of those beanie babies. Well, at least I have a good memory from a scam.

[Kelvin Mace]

10. Even AFTER taxes he would have had $19 million!!!!

How much money do you need?

$2,375,000 after taxes every freakin' year for EIGHT years!

$6,506.85 every freakin' day for EIGHT years!

Of course, you have to wonder how he managed to be so incompetent that he got caught doing this. I mean, it is not like he is going to have much company in prison, even though he should.

[muriel_volestrangler]

12. More than that, he's a billionaire - he had over a billion in assets

Why risk jail over $5 million, or even $50 million, when you have that much? If I had so much money that I could do pretty much whatever I want as long as it's within the law, then I'd make absolutely certain that everything I did was perfectly legal, so that I could continue to enjoy all that money.

[Kelvin Mace]

14. I was commenting on the income mentioned

in the article, which was $24 million, which he evaded paying $5million.

[hughee99]

15. If he is to be believed, it sounds like he didn't do this all through accountants or people

who knew what they were doing. He tried to do it himself and somehow fucked it up.

[Kelvin Mace]

16. Right!

All billionaires do their own taxes.

That would be like trying to perform brain surgery on yourself, and about as pleasant.

[hughee99]

17. I don't buy the "my accountant didn't know anything about it" either. Usually, it's the opposite

and the rich person is saying, "I don't know, my account handles all that stuff" or "My accountant told me this was legal".

[Kelvin Mace]

18. Yeah, his story is novel enough that it could be true

I guess.

But that would make him one of the world's biggest idiots.