Ty Warner, creator of Beanie Babies, was charged with tax evasion on Wednesday.
According to Warner’s attorney, he plans to plead guilty to the tax evasion and pay a $53 million penalty. Warner is accused of not reporting $3.1 million in gross income in 2002 that was in a Switzerland-based bank account. He will likely be able to pay the penalty, as Forbes has recently estimated his net worth at $2.6 billion. Warner may have to spend up to five years in prison and pay additional fines, reports the Detroit Free Press.
The United States made an agreement with Switzerland last month that will allow Swiss banks to pay penalties and name names of U.S. taxpayers that have used the banks for misdeeds. A new law will take effect next year that will require foreign banks to report information regarding accounts held by U.S. taxpayers to the Internal Revenue Service, reports The Wall Street Journal.