H. Ty Warner was accused of evading $5.6m in taxes in the US by concealing assets. He pleaded guilty, made full restitution, paid c.a. $54m in civil penalty, and was sentenced to 2 years’ probation. Prosecution was seeking at least a year in prison. However, a federal appeals court upheld the probation sentence for the billionaire creator of Beanie Babies. Reuters reports further that the judges wrote ‘while incarcerating Warner undoubtedly would have sent a stronger message, the message sent by his existing sentence is, in our view, strong enough’.
Probation is a common sentence in offshore tax evasion cases.