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U.S. appeals toymaker’s sentence

Associated Press • Aug 27, 2014 at 3:12 PM

The Justice Department on Thursday appealed the sentence of H. Ty Warner, the billionaire creator of Beanie Babies plush toys who got probation, not prison, for evading taxes on money hidden in a Swiss bank account.

Warner faced 46 months to 57 months in prison under nonbinding guidelines when he was sentenced Jan. 14 by U.S. District Judge Charles Kocoras in Chicago. Prosecutors, who urged Kocoras to impose some prison time on Warner, asked the U.S. Court of Appeals in Chicago on Thursday to review his sentence.

Kocoras sentenced Warner, the founder of toymaker Ty Inc. and Ty Warner Hotels & Resorts, to two years of probation and 500 hours of community service. Warner pleaded guilty to evading almost $5.6 million in taxes on more than $24.4 million in undeclared income on accounts that held as much as $107 million.

Warner’s evasion was the largest of more than 100 filed in a five-year crackdown.

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