Jury selection begins in Coughlin case
Posted on Thursday, August 21, 2008
BENTONVILLE - Jury selection will begin this afternoon in the Wal-Mart lawsuit against its former vice chairman Tom Coughlin over his retirement policy.
Prospective jurors are scheduled to report at 1 p.m. for the beginning of jury selection. Questionnaires were mailed to 100 prospective jurors, but at least 50 are scheduled to report for the first day of jury selection.
Wal-Mart filed the suit in 2005 against Coughlin in an attempt to void his retirement agreement that may be valued at up to $ 15 million. Wal-Mart claims Coughlin misappropriated hundreds of thousands of dollars for his personal benefit through fraudulent means.
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 systems at Wal-Mart to embezzle money, gift cards and products that were provided to Coughlin for his personal benefit.
U. S. District Judge Robert Dawson sentenced Coughlin to five years' probation with 27 of the months on home detention and 1, 500 hours of community service. 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 filed a counterclaim seeking to have Wal-Mart abide by the retirement agreement he had reached with the company.
On Wednesday, Circuit Judge Jay Finch said he will rule later on whether to allow attorneys for Wal-Mart to introduce DVDs and aviation records to be used during the trial.
Tim Brooks, one of Coughlin's attorneys, argued during the hearing that Wal-Mart waited until the eve of the trial to turn over the materials to Coughlin's attorneys.
Matthew Carter, one of Wal-Mart's attorneys, said the DVDs and aviation records will be used to impeach Coughlin when he testifies during the trial.
Carter said Coughlin claimed to have been funding an anti-union program, but the aviation records will show that he was in China for an extended period of time when he claims to have made a payment to a union informant.
Finch reserved issuing a ruling, but did say it is unlikely the items will be used as exhibits, but may be impeachment material.
Finch will meet with attorneys at 10 a.m. today, and the afternoon is reserved for jury selection.
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