Former Wal-Mart employee suing Coughlin
Posted on Tuesday, April 1, 2008
BENTONVILLE — A former Wal-Mart employee is suing former Vice Chairman Tom Coughlin for her role in his scheme to defraud the corporation.
On Friday, Fayetteville attorney Bobby Odom filed the lawsuit against Coughlin in Benton County Circuit Court on behalf of Patsy Stephens.
Stephens was an administrative manager for the retailer. She submitted vouchers in order to receive money for Coughlin, according to court documents. Stephens submitted the vouchers as instructed by her immediate supervisor, Rob Hey, and Coughlin.
Stephens would receive the money from the vouchers, then deposit it in her bank account. She then would write checks for cash or to Hey so he could give the money to Coughlin, the complaint states.
Stephens was found guilty in federal court of wire-fraud charges. She is awaiting sentencing on eight counts of wire fraud. She could receive a sentence of up to 20 years in prison and a $ 250, 000 fine on each count.
After almost 25 years with Wal-Mart, Stephens was terminated on March 28, 2005, for her role in Coughlin’s scheme.
Stephens claims in the suit she was not aware of any illegal deeds, and she was under the belief what she was doing was for the benefit of the company.
In January 2006, Coughlin pleaded guilty to five counts of wire fraud and one count of tax evasion. Criminal information charged that Coughlin used his position at Wal-Mart from 1996 to 2002 to execute a scheme to illegally instruct subordinate employees to manipulate the employee travel-reimbursement and vendor-invoice accounting system at Wal-Mart to embezzle money, gift cards and products that were provided to Coughlin for his personal benefit.
In August 2006, U. S. District Judge Robert Dawson sentenced Coughlin to five years’ probation with 27 of the months on home detention. He was ordered to pay a $ 50, 000 fine, $ 306, 822. 40 in restitution to Wal-Mart and $ 104, 395. 60 to the Internal Revenue Service. Coughlin must also perform 1, 500 hours of community service.
Stephens is seeking unspecified compensatory and punitive damages against Coughlin.
The case is assigned to Circuit Judge John Scott.
Hey filed a similar suit against Coughlin.
FEEDBACK:
Something to say about this topic? Submit a Letter to the Editor online
