Former Wal-Mart vice chairman, Thomas Coughlin was booted from the retailer's board back in March '05 over allegations of spending improprieties. Yesterday Coughlin plead guilty to wire fraud and tax evasion charges but claims that he engaged in these activities to reimburse himself for funding Wal-Mart's off-the-books union busting program.

Via Bloomberg:

Wal-Mart Former Vice Chairman Coughlin Admits Fraud

Jan. 31 (Bloomberg) -- Thomas M. Coughlin, a former second- ranking executive at Wal-Mart Stores Inc., pleaded guilty to wire fraud and tax evasion for stealing hundreds of thousands of dollars from the company. The former Wal-Mart vice chairman entered pleas today before U.S. District Judge Robert T. Dawson in Fort Smith, Arkansas.

``Today I accepted responsibility for serious personal mistakes in judgment,'' Coughlin said in a statement distributed by his lawyer, Blair G. Brown of Zuckerman Spaeder in Washington. ``I regret the embarrassment this matter has caused my family and friends, and I thank them for their support, love and friendship.''

Coughlin, 57, pleaded guilty to five counts of wire fraud, each of which carries a maximum penalty of five years in prison, and one of tax evasion, punishable by as much as three years. Dawson said he will impose a sentence in 10 to 14 weeks, after reading a probation report and a sealed plea agreement.

On Jan. 7, the Wall Street Journal said federal sentencing guidelines call for a sentence of more than two years, citing people familiar with the matter. Coughlin will be free on bail until the sentencing.

Coughlin was accused of telling subordinates at Bentonville, Arkansas-based Wal-Mart, including Robert E. Hey Jr., director of operations development, to use the company's travel reimbursement and vendor invoice system to embezzle money, gift cards and goods.

The former executive claimed he took the money as reimbursement for funding a secret anti-union program at Wal- Mart. The company, which has battled unionization throughout the U.S., denied the claim...

More in the full article.

-- MDT