Beanie Babies billionaire secretly withheld bank records from grand jury

In rejected Supreme Court appeal, Forbes 400 member argued subpoena violated his Fifth Amendment right to avoid self-incrimination

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Before Beanie Baby creator Ty Warner got away with community service for evading taxes on $25 million of from Swiss bank accounts, his lawyers claimed that he had tried to “rectify his mistake” by applying to the Internal Revenue Service’s voluntary disclosure program in 2009.

Later, Warner fought handing over records of his foreign bank accounts to a grand jury in a battle that made its way up to the U.S. Supreme Court. Last May, the court declined to hear Warner’s anonymous appeal in a case captioned T.W. v. United States of America. In September 2013, in a deal with the U.S. Attorney, Warner pleaded guilty to one felony count of tax evasion and agreed to pay a $53 million fine for failing to file required Foreign Bank Account Reports (FBARs). However, according to the U.S. Sentencing Commission Guidelines, Warner should have been sentenced to 46 to 57 months of jail time, which he was then given.

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Amanda Ciccatelli

Amanda G. Ciccatelli is a Contributing Writer for InsideCounsel, where she covers the patent litigation space. Amanda earned a B.A. in Communications and Journalism from...

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