Tom Coughlin (Wal-Mart)

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Thomas M. "Tom" Coughlin (born 1949) is a former vice chairman of Wal-Mart Stores, Inc. and confidant of founder Sam Walton.

Coughlin is a native of Cleveland, Ohio. After graduating from St. Edward High School in suburban Cleveland, Coughlin attended California State University in Hayward, California and earned a Bachelor's Degree in political science.

He began his career with the retailer in 1978 in the company’s security division, and was named vice chairman of Wal-Mart and elected to the Wal-Mart Board of Directors in April of 2003. He stepped down December 6, 2004. When Coughlin's retirement was announced, Wal-Mart praised Coughlin for his longtime success at the corporation. Wal-Mart CEO Lee Scott said in a company-issued press release, "Tom Coughlin has achieved one of the most successful business careers that anyone could imagine..."[1] Sam Walton's son, Rob Walton, added that "..I particularly respect the special relationship that he has built with our associates in the field. This says a lot about how well Tom Coughlin represents the Wal-Mart culture."[2]

[edit] Legal troubles

Beginning in July 2005, he is the subject of a United States Department of Justice investigation, as well as a lawsuit by Wal-Mart, and is being reviewed by a federal grand jury over misuse of company gift cards. When the charges first surfaced in April 2005, Coughlin claimed the money he embezzled was being used to pay bribes to trade union officials not to organize at Wal-Mart locations and to identify pro-union Wal-Mart workers[3].

He has pleaded guilty to five counts of wire fraud and one count of filing a false tax return related to embezzlement and theft from Wal-Mart while serving as a member of its board.

U.S. Attorney Robert Balfe told reporters the investigation had found no evidence backing Coughlin's earlier claims that the money he took was reimbursement for anti-union activities.[1]

Coughlin was sentenced on August 11, 2006 at Fort Smith, Arkansas to 33 months in home detention after pleading guilty to stealing money, merchandise and gift cards from the retailer.

Coughlin avoided any prison detention, but was ordered to serve five years probation, and pay a $50,000 fine and about $411,000 in restitution to Wal-Mart Stores Inc. and the Internal Revenue Service[4][5]. In addition, Coughlin was ordered by the court to 27 months of home detention[6]

A physician stated in court that Coughlin was in poor health, suffering from diabetes, cardiac disease, sleep apnea, arterial blockage, and other ailments. Despite these medical claims, Coughlin was recently seen at a National Wild Turkey Federation fund raiser in Benton County, Arkansas. Federal prosecutors were stunned to learn that Coughlin would attend such an event while on house arrest--especially since he claimed he was so ill[7]

[edit] Lawsuits

Former Wal-Mart employees working under Coughlin are suing him for their role in his embezzlement of Wal-Mart funds. Former Administrative Manager Patsy Stephens deposited Wal-Mart money into her personal bank account and then wrote checks for her immediate superivisor, Coughlin, and for cash. Stephens claims she thought these practices were to the benefit of the company[8].

[edit] References

  1. ^ http://www.secinfo.com/d14D5a.16b8s.d.htm#Dates Retrieved April 4, 2008.
  2. ^ http://www.secinfo.com/d14D5a.16b8s.d.htm Retrieved April 4, 2008.
  3. ^ http://www.washingtonpost.com/wp-dyn/articles/A38810-2005Apr8.html Retrieved April 4, 2008.
  4. ^ 'Former Wal-Mart Exec Sentenced for Theft'." Washington Post. August 11, 2006. Retrieved on August 11, 2006
  5. ^ Former Wal-Mart exec sentenced." CNN. August 11, 2006. Retrieved on August 11, 2006.
  6. ^ http://www.foxnews.com/story/0,2933,207989,00.html Retrieved April 4, 2008.
  7. ^ http://nwanews.com/adg/National/219612/print/ Retrieved April 4, 2008.
  8. ^ http://nwanews.com/bcdr/News/60284/ Retrieved April 4, 2008.