Former Wal-Mart executive Tom Coughlin was sentenced once again in his trial for tax evasion and fraud. After amending his previous sentence (which the prosecution considered “too lenient") to include 1,500 hours of community service, Coughlin nearly kissed politely thanked the judge for not sending him to jail. Click here for our archives following the case.

Federal judge gives former Wal-Mart executive community service instead of prison term [Associated Press via International Herald Tribune]

A former Wal-Mart executive avoided a prison term Friday when a federal judge resentenced him for tax evasion and fraud convictions.

The judge added only 1,500 hours of community service to Tom Coughlin’s punishment, and Coughlin said he was grateful.

“Judge, I just want to thank you for your fairness,” he said.

In 2006, U.S. District Judge Robert Dawson had sentenced Coughlin to 27 months of home detention, five years’ probation, a $50,000 fine and $400,000 restitution.

In an appeal by federal prosecutors, the 8th U.S. Circuit Court of Appeals last year said the sentence was too lenient and sent the case back to Dawson.

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The Arkansas Democrat-Gazette is reporting that a federal appeals court has upheld a decision ordering a new sentencing for former Wal-Mart executive Tom Coughlin.

In January of last year, Coughlin plead guilty to wire fraud and tax evasion, and admitted that he had stolen gift cards and equipment from his former employer. Despite facing a possible 28 years in prison and fines of over $1.3 million, Coughlin was let off relatively easily, primarily because it was argued that his detiorating health made prison time impossible. His initial sentence included 27 months of home detention and 33 months probation, plus fines and restitution adding up to approximately $460,000.

In August of this year, a 3-judge panel on the 8th Circuit Court of Appeals rejected the argument that Coughlin’s health problems - a list including heart failure, diabetes, obesity and gout - could not be properly treated in prison, and ordered a new sentencing hearing. Prosecutors originally sought a sentence of at least 27 months, although it’s believed that request may be reduced to as little as 6 months.

Justices: Coughlin due new sentence [Arkansas Democrat-Gazette]

A federal appeals court Wednesday upheld a decision ordering a new sentence for former Wal-Mart Stores Inc. executive Tom Coughlin on a 2006 fraud conviction.

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Ex-Wal-Mart Officer Coughlin May Face Prison Sentence [Bloomberg News]

An appeals court tossed out the house-arrest sentence of former Wal-Mart Stores Inc. Vice Chairman Thomas Coughlin, calling it too lenient and creating the possibility he’ll go to prison for stealing from the company.

The court in St. Louis said today the trial judge’s sentence of 27 months’ house arrest for the ailing Coughlin, 58, was unreasonable, based on the case record. It said Coughlin didn’t prove his poor health justified a nonprison sentence.

“The district court clearly erred in finding Coughlin suffers an extraordinary physical impairment and abused its discretion,’’ the court said in a three-judge panel’s 2-1 ruling.

Defense attorneys claimed Coughlin’s heart condition, diabetes, obesity and sleep apnea made him too fragile to survive the stress of prison time. Prosecutors argued in an appeal that thousands of inmates get adequate care for similar conditions. Both sides can present new evidence before the resentencing, the court said today.

The former executive, admitting he falsified expense reports and stole Wal-Mart gift cards, pleaded guilty last year to fraud and failing to report illegal income for his 2000 taxes.

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Court Allows Wal-Mart Suit Against Former Executive [Associated Press via Wall Street Journal]

The Arkansas Supreme Court ruled Thursday that a state judge was wrong to dismiss Wal-Mart Stores Inc.’s lawsuit to break a retirement deal with a convicted former executive, saying the world’s largest retailer is entitled to have a jury hear its claims.

Wal-Mart, based in Bentonville, Ark., wants to void a multimillion-dollar retirement settlement it gave to Thomas Coughlin, who later pleaded guilty to defrauding the company through the misuse of gift cards and expense reimbursements.

Prison Is Sought for Former Wal-Mart Officer [Reuters via New York Times]

The case of the former vice chairman of Wal-Mart Stores, Thomas M. Coughlin, was back in court on Thursday as an appellate court took up a prosecutor’s plea that Mr. Coughlin’s sentence was too light.

The United States attorney for Western Arkansas, Robert Balfe, told the United States Court of Appeals for the Eighth Circuit that it appeared Mr. Coughlin, who admitted to stealing thousands of dollars from the company, was spared prison because he was a well-known businessman.

Arguments that Mr. Coughlin’s health problems would worsen behind bars were unproven, Mr. Balfe said. “There is no evidence established about what would occur or that the prison environment would have worsened his condition.”

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From the Associated Press:

Wal-Mart appeals Coughlin benefits

Wal-Mart lawyers argued before the Arkansas Supreme Court on Thursday that the retailer should be allowed to break a multimillion-dollar retirement package with a former executive because he acknowledged defrauding the company.

But a lawyer for former vice chairman Tom Coughlin said a lower court dismissal of Wal-Mart’s claim should stand, as Coughlin didn’t defraud the company while in negotiations for his retirement agreement. Lawyers in the case say the package is worth between $12 million and $15 million.

Coughlin attorney William W. Taylor III said in a perfect world, no company or person would have to sign contracts when “unaware” of potential liabilities.

“But that’s not the real world and that’s not what these parties wanted to do,” Taylor said.

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From the Associated Press via BusinessWeek:

A federal judge has set a sentencing hearing Aug. 11 for Thomas Coughlin, the former No. 2 executive at Wal-Mart Stores Inc., who pleaded guilty in January to fraud and tax charges for stealing money, gift cards and merchandise from the world’s largest retailer.

Coughlin, 57, faces a maximum of 28 years in prison after pleading guilty to five counts of wire fraud and one count of filing a false tax return. He also could be fined $1.35 million.

U.S. District Judge Robert Dawson, who accepted Coughlin’s guilty plea in January, set the sentencing hearing for 10 a.m. on Aug. 11 in his courtroom in Fort Smith, Ark.

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