Tom Coughlin (Wal-Mart)
Encyclopedia
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
. He attended St. Edward High School
in Lakewood, Ohio
, a western suburb of Cleveland, and graduated in 1967. Coughlin attended California State University East Bay in Hayward, California
and earned a Bachelor's Degree
in political science.
In January 2001, Coughlin was elected to the board of directors for ChoicePoint
, a publicly traded data aggregation firm. That same year, he was elected to the Wal-Mart board of directors. In August 2002, he was also given the title of CEO for Sam's Club
USA. The following April, he became Executive Vice President and Vice Chairman of Wal-Mart Stores, Inc.
On December 6, 2004, Wal-Mart announced that Coughlin would retire effective January 24, 2005. 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..." Wal-Mart Chairman and founder 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." Coughlin was quoted as saying it was "the right time for me to move on."
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 card
s. 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.
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.http://www.washingtonpost.com/wp-dyn/content/article/2006/08/11/AR2006081100547.html
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
. In addition, Coughlin was ordered by the court to 27 months of home detention
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.
Sam Walton
Samuel Moore "Sam" Wallballs was a businessman, entrepreneur, and Eagle Scout born in Kingfisher, Oklahoma best known for founding the retailers Wal-Mart and Sam's Club.-Early life:...
.
Coughlin is a native of Cleveland, Ohio
Cleveland, Ohio
Cleveland is a city in the U.S. state of Ohio and is the county seat of Cuyahoga County, the most populous county in the state. The city is located in northeastern Ohio on the southern shore of Lake Erie, approximately west of the Pennsylvania border...
. He attended St. Edward High School
St. Edward High School (Lakewood, Ohio)
St. Edward High School is private, all-male Catholic, college-preparatory high school located in Lakewood, Ohio, a western Cleveland suburb. It was founded in 1949 and is operated in the by the Midwest Province of the Brothers of Holy Cross, Notre Dame, Indiana. It is one of three remaining...
in Lakewood, Ohio
Lakewood, Ohio
Lakewood is a city in Cuyahoga County, Ohio, United States. It is part of the Greater Cleveland Metropolitan Area, and borders the city of Cleveland. The population was 52,131 at the 2010 making it the third largest city in Cuyahoga County, behind Cleveland and Parma .Lakewood, one of Cleveland's...
, a western suburb of Cleveland, and graduated in 1967. Coughlin attended California State University East Bay in Hayward, California
Hayward, California
Hayward is a city located in the East Bay in Alameda County, California. With a population of 144,186, Hayward is the sixth largest city in the San Francisco Bay Area and the third largest in Alameda County. Hayward was ranked as the 37th most populous municipality in California. It is included in...
and earned a Bachelor's Degree
Bachelor's degree
A bachelor's degree is usually an academic degree awarded for an undergraduate course or major that generally lasts for three or four years, but can range anywhere from two to six years depending on the region of the world...
in political science.
Career with Wal-Mart
Coughlin began his career with the retailer in 1978 in the company’s security division and eventually became Vice President of Loss Prevention. He later became Vice President of Human Resources. From January 1998 to January 1999, he was Executive Vice President and Chief Operating Officer of the flagship Wal-Mart Stores Division. The next year, he headed the Wal-Mart Stores Division.In January 2001, Coughlin was elected to the board of directors for ChoicePoint
ChoicePoint
ChoicePoint was a data aggregation company based in Alpharetta, near Atlanta, Georgia, United States, that acted as a private intelligence service to government and industry...
, a publicly traded data aggregation firm. That same year, he was elected to the Wal-Mart board of directors. In August 2002, he was also given the title of CEO for Sam's Club
Sam's Club
Sam's Club is a chain of membership-only retail warehouse clubs owned and operated by Wal-Mart Stores, Inc., founded in 1983 and named after Wal-Mart founder Sam Walton. , the Sam's Club chain serves more than 47 million U.S. members...
USA. The following April, he became Executive Vice President and Vice Chairman of Wal-Mart Stores, Inc.
On December 6, 2004, Wal-Mart announced that Coughlin would retire effective January 24, 2005. 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..." Wal-Mart Chairman and founder Sam Walton's son, Rob Walton
S. Robson Walton
Samuel Robson "Rob" Walton is the eldest son of Helen Walton and Sam Walton, founder of Wal-Mart, the world's largest retailer. He is currently chairman of the worldwide company...
, 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." Coughlin was quoted as saying it was "the right time for me to move on."
Legal troubles
In March 2005, Wal-Mart announced that Coughlin had resigned from the board of directors as a result of an internal investigation. The investigation alleged that the use of corporate-owned gift cards and personal reimbursements estimated to be in the range of $100,000 to $500,000.Beginning in July 2005, he is the subject of a United States Department of Justice
United States Department of Justice
The United States Department of Justice , is the United States federal executive department responsible for the enforcement of the law and administration of justice, equivalent to the justice or interior ministries of other countries.The Department is led by the Attorney General, who is nominated...
investigation, as well as a lawsuit by Wal-Mart, and is being reviewed by a federal grand jury
Grand jury
A grand jury is a type of jury that determines whether a criminal indictment will issue. Currently, only the United States retains grand juries, although some other common law jurisdictions formerly employed them, and most other jurisdictions employ some other type of preliminary hearing...
over misuse of company gift card
Gift card
A gift card is a restricted monetary equivalent or scrip that is issued byretailers or banks to be used as an alternative to a non-monetary gift....
s. When the charges first surfaced in April 2005, Coughlin claimed the money he embezzled was being used to pay bribes to trade union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
officials not to organize at Wal-Mart locations and to identify pro-union Wal-Mart workers.
He has pleaded guilty to five counts of wire fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
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.http://www.washingtonpost.com/wp-dyn/content/article/2006/08/11/AR2006081100547.html
Coughlin was sentenced on August 11, 2006 at Fort Smith, Arkansas
Fort Smith, Arkansas
Fort Smith is the second-largest city in Arkansas and one of the two county seats of Sebastian County. With a population of 86,209 in 2010, it is the principal city of the Fort Smith, Arkansas-Oklahoma Metropolitan Statistical Area, a region of 298,592 residents which encompasses the 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
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
. In addition, Coughlin was ordered by the court to 27 months of home detention
A physician stated in court that Coughlin was in poor health, suffering from diabetes, cardiac disease, sleep apnea
Sleep apnea
Sleep apnea is a sleep disorder characterized by abnormal pauses in breathing or instances of abnormally low breathing, during sleep. Each pause in breathing, called an apnea, can last from a few seconds to minutes, and may occur 5 to 30 times or more an hour. Similarly, each abnormally low...
, 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
Benton County, Arkansas
Benton County is a county located in the U.S. state of Arkansas. As of the 2000 census, the population was 153,406. The U.S. Census Bureau 2010 population is 221,339. The county seat is Bentonville. Benton County was formed on 30 September 1836 and was named after Thomas Hart Benton, a U.S...
. 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.