Thomas Coughlin

Former Wal-Mart Stores executive Thomas Coughlin faces up to eight years in prison and fines of up to $1.35 million after pleading guilty to defrauding Wal-Mart.

Coughlin, who retired as Wal-Mart's vice chairman in January 2005, pleaded guilty to five counts of wire fraud and aiding and abetting, and one count of tax evasion for embezzling as much as $500,000 from Wal-Mart.

Coughlin allegedly misappropriated some of the money by ordering gift cards as incentives for store managers, then used them himself. A store clerk became suspicious when Coughlin redeemed a gift card unlikely to be used by a high-ranking executive, and reported it to Wal-Mart headquarters, touching off an investigation (Xtra, July 20, 2005).

News reports say that during his Jan. 31 court appearance, Coughlin made a statement through his attorney, accepting responsibility for "serious personal mistakes in judgment. This was not an easy decision. I regret the embarrassment this matter has caused my family and friends."