Beanie Babies’ billionaire honcho who is also a known tax evader has been handed a two year probation sentence for his crimes. Tax lawyers for the convicted businessman have said that they consider the sentencing ‘reasonable. Warner’s tax lawyers think that the ruling is in keeping with the sentences that the government has been handing down to the offshore banks caught in US tax fraud or just trying to save money from an out of step government.
A Billionaire is Punished for Trying to Save Money
Ty Warner, the head of stuffed collectibles brand Beanie Babies, was charged in October of 2013 for tax evasion. The business mogul reportedly failed to tell tax authorities about his offshore account with UBS. Warner’s tax lawyers then entered into a plea agreement as a part of which Warner had to pay back all taxes and interest, along with a civil penalty of $53 million. Incredible – this many creates opportunities for Americans, is already over taxed, and now he is in trouble for trying to save money.
Uncle Sam is out of touch.
US District Judge Charles Kocoras who was in charge of Warner’s sentencing received more than seventy letters from various individuals detailing acts of kindness that Warner had performed for them and it helped sway his attitude due to which Warner received a kind sentence of a two year probation from the judge.
The government however tried to repeal the sentence given to Warner saying that the letters did not count as they were written by workers (so the government does not like job creators now!) who were formerly engaged at Warner’s Westmont based Ty Inc. According to the statements given to the press at that time, the government authorities clearly thought that the Judge had given too much weight to Warner’s supposedly ‘charitable’ acts, and the government would actually like to see the tax evading business magnet in jail for at least a year. The sentence was appealed in May.
A Solid American
Warner’s tax lawyers have filed a seventy page document in a US appeals court stating their view about the judgment. The document states the reasons why the sentence is fair and reasonable. Warner’s lawyers also say that the Beanie Babies head does not deserve a harsher sentence and that Judge Kocoras cannot be accused of having abused his discretion at all.
American Job Creators are being Punished
The filed document says that probation sentences are pretty common in offshore account cases, and hence Warner’s sentence does not come into the category of an ‘outlier’. The tax lawyers defending Ty Warner have also praised the District Courts Judge for acting within the bounds of his ‘considerable discretion’ and consider the sentence at par with the recent rulings in similar cases.
America’s spending problem has now reached critical mass and the Obama recession has only made this situation worse.
Thousands Avoid Persecution through Government’s Program
Warner’s lawyers also mentioned the government’s voluntary disclosure program which allows thousands of tax evaders to avoid the courts. Warner had categorically rejected using this option and had decided to come clean publicly. Probation sentences are given to almost two-thirds of the tax offenders which the government prosecutes every year.
US appeals courts have reversed less than 1% of the challenged sentences that have their way for being ‘unreasonable’. There are very few chances of Warner’s sentence being reversed given the trend in such cases.