The Wall Street Journal-20080204-Ex-Vice Chairman Of Wal-Mart Stores Avoids Prison Term

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Ex-Vice Chairman Of Wal-Mart Stores Avoids Prison Term

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Associated Press

A former vice chairman of Wal-Mart Stores Inc. avoided a prison term Friday when a federal judge resentenced him for tax evasion and fraud convictions.

In 2006, U.S. District Judge Robert Dawson had originally sentenced Tom Coughlin, who was once Wal-Mart's No. 2 executive, to 27 months of home detention, five years probation, a $50,000 fine and $400,000 restitution. In an appeal by federal prosecutors, the Eighth U.S. Circuit Court of Appeals last year said the sentence was too lenient and sent the case back to Judge Dawson.

During the resentencing, the judge said Mr. Coughlin, 58 years old, had a history of community service, no criminal record and has medical problems. The judge added only 1,500 hours of community service to the punishment.

Mr. Coughlin was accused of stealing gift cards and having the Bentonville, Ark., company cover the cost of other items, for a total loss that Wal-Mart estimated at about $500,000. Officials say Mr. Coughlin has paid his fine and restitution.

In January 2006, Mr. Coughlin pleaded guilty to wire fraud and tax evasion. He faced a possible sentence of more than 28 years in prison and fines of $1.35 million.

Mr. Couglin yesterday said, "Judge, I just want to thank you for your fairness."