Beanie Babies creator escapes jail for tax evasion

The billionaire creator of Beanie Babies has escaped a prison sentence after pleading guilty to tax evasion in the US.

H. Ty Warner, whose fortune came from the popular stuffed animal playthings, appeared composed as he made a brief statement before he was sentenced in a Chicago court.

He apologised and said he felt “shame and embarrassment” for what he had done.

He could have been jailed for up to five years in prison after pleading guilty to a single tax evasion count for not paying taxes on $25m in income stashed in Swiss bank accounts.

District Judge Charles Kocoras also ordered Warner to serve 500 hours of community service.

Warner is among the highest-profile targets in the federal government’s push to prosecute Americans concealing income from the IRS overseas.