Former Chairman of Wal-Mart Pleads Guilty to Fraud and Tax Charges

By Danielle Briones

Published on January 31, 2006

Tom Coughlin admitted he stole gift cards, and used false invoices and expense statements to pay for personal expenditures such as upgrades to his truck, care for his dog, and a hunting lease.

Coughlin could be fined more than $1 million and sentenced to 28 years in prison for his crimes.

Wal-Mart lawyers tipped off federal prosecutors after recognizing Coughlin's embezzlement scheme, estimating that he had pilfered about $500,000 from the company.

Coughlin earned a $1.03 million salary during his last year at Wal-Mart. According to the SEC, he also received more than $3 million in bonuses and other income in 2005, and held around $20 million in the company's stock.

Coughlin stepped down as vice chairman last year after prosecutors filed charges.

In court, Coughlin admitted his mistakes and stated he regrets his actions.

Wal-Mart filed a lawsuit last year to put an end to Coughlin's retirement agreement, worth millions of dollars, in an effort to recover money.

The lawsuit was dismissed; however, Wal-Mart has said it will appeal.

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