U.S. appeals toymaker’s sentence

Millions made from Beanie Babies hidden in Swiss bank account
Associated Press
Feb 14, 2014

 

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.

Comments

Licorice Schtick

I don't know which is more amazing - that you can actually hide Beanie Babies in a Swiss account, or that you can make millions doing it.

Contango

The U.S. is just about the only country in the world that taxes overseas profits. The heavy handed approach toward requiring foreign institutions to report American accounts is hurting our foreign business relations.

http://m.freedomworks.org/blog/j...

End the 16th Amendment, it gives too much power to the greedy kleptocrats.

The Hero Zone's picture
The Hero Zone

I think our President will sign any bill that has, in its Executive Summary (probably the only portion ever actually read), "A commonsense ten-year revenue enhancement reform to address middle-class equality disparity (primarily shouldered by women, the job-locked, children, minorities, endangered species, the climate, and undocumented dreamer-patriots) by enforcing fair share practices which involve asking the richest among us to pay a little more." I think that's about every buzzword possible to pass...anything!

The satire aside, I agree. Repeal and replace. Not sure I ever asked you, Contango, but do you prefer something more like the FAIR or FLAT tax?

Contango

Re: "FAIR or FLAT tax?"

If those are the only two choices:

Flat, with few-to-no deductions. With a tax form the sz. of a post card.

Preference: A VAT AND no income tax. If you don't buy it, you don't pay the tax.

Babo

Agree that VAT is the way to go.

Ned Mandingo

why does this guy get arrested when much larger companies like GE do things like this on a grand scale and pay 0$ in taxes. This guy made billions by making stupid little stuffed animals a must have, good for him. I would bet he has paid plenty in taxes over the years, leave him alone.

Dr. Information

Because Ned, and this is not a rip on you but clearly you only read what the liberal media wants you to. GE posted losses in the millions, year(s) before and therefore they can write that off against any profit made in future years for a set time frame.

If you had a business and lost 10K in 2010, 2011, 2012 and then made a profit of 5K in 2013, wouldn't you like to keep that 5k to offset the loss you took previously? That is GE, but on a larger scale.