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Beanie Babies Creator to Plead Guilty for Tax Evasion

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Creator of everyone's favorite bean-filled babies, Ty Warner, has agreed to plead guilty for tax evasion. The Wall Street Journal reports that Warner, who's still the sole owner and CEO of Ty Inc., will pay $53.6 million for allegedly failing to report income he earned in a secret offshore financial account, which makes this "the largest offshore-account penalty ever reported."

The whole scam began in 1996 and grew to involve a couple different Swiss Banks, aliases (over $96 million was listed under the Molani Foundation), and the tears of Beanie Babies in attics everywhere. According to the Justice Department, Warner owed $885,300 in unpaid taxes, all told. His attorney, Gregory Scandaglia, argued that in 2009 he tried to turn himself in through the IRS's Offshore Voluntary Disclosure Program, which charges massive penalties but offers protection against criminal prosecution, but was rejected. In a statement Scandaglia said, "This is an unfortunate situation that Mr. Warner has been trying to resolve for several years now [...] Mr. Warner accepts full responsibility for his actions with this plea agreement."
· Beanie Babies Founder to Plead Guilty to Tax Evasion [WSJ]
· Frank Asks: Why Is It the '90s All Over Again? [Racked]