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Beanie Babies creator Ty Warner to admit tax evasion | Beanie Babies creator Ty Warner to admit tax evasion |
(about 2 hours later) | |
The billionaire creator of Beanie Babies toys could face up to five years in prison after agreeing to admit a charge of tax evasion. | |
Federal prosecutors said that Ty Warner "went to great lengths" to hide more than $3m (£1.9m) of income in a secret Swiss bank account. | |
Mr Warner's lawyer said his client had agreed to pay a $53m fine. | Mr Warner's lawyer said his client had agreed to pay a $53m fine. |
The 69-year-old Illinois tycoon's net worth is estimated by Forbes at $2.6bn, ranking him the 209th richest American. | The 69-year-old Illinois tycoon's net worth is estimated by Forbes at $2.6bn, ranking him the 209th richest American. |
Mr Warner's attorney, Gregory Scandaglia, said his client accepted "full responsibility for his actions with this plea agreement". | Mr Warner's attorney, Gregory Scandaglia, said his client accepted "full responsibility for his actions with this plea agreement". |
"This is an unfortunate situation that Mr Warner has been trying to resolve for several years now," Mr Scandaglia told the Associated Press. | "This is an unfortunate situation that Mr Warner has been trying to resolve for several years now," Mr Scandaglia told the Associated Press. |
The charges come as a result of a clampdown by US authorities on its citizens hiding money abroad to avoid paying tax - particularly in Switzerland. | The charges come as a result of a clampdown by US authorities on its citizens hiding money abroad to avoid paying tax - particularly in Switzerland. |
It is alleged that Mr Warner, who also has a reputation for philanthropy, set up a Swiss bank account in 1996 with the UBS financial services company. | |
He failed to tell his accountants or the US tax authorities about the existence of the account, according to a press release by the US Attorney's office in Chicago. | He failed to tell his accountants or the US tax authorities about the existence of the account, according to a press release by the US Attorney's office in Chicago. |
The prosecutor's statement did not mention a $53m fine. | The prosecutor's statement did not mention a $53m fine. |
Beanie Babies are a soft toy, popular in the 1990s, that sell for between $5 and $7. | Beanie Babies are a soft toy, popular in the 1990s, that sell for between $5 and $7. |
Allen Adamson, from the branding firm Landor Associates, said the toy company could be affected by the "negative buzz" of the case. | Allen Adamson, from the branding firm Landor Associates, said the toy company could be affected by the "negative buzz" of the case. |
"It's so jarring because this product feels so sweet, so innocent," he said. | "It's so jarring because this product feels so sweet, so innocent," he said. |
However, branding expert Laura Ries, of Ries & Ries, disagreed. | However, branding expert Laura Ries, of Ries & Ries, disagreed. |
"People may not buy [a Beanie Babies toy] because it's not as cool as it was. But I don't think consumers care the owner didn't pay his taxes and is in big legal trouble." | "People may not buy [a Beanie Babies toy] because it's not as cool as it was. But I don't think consumers care the owner didn't pay his taxes and is in big legal trouble." |
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