Mars’ threats have impacted health, Coughlin says
Posted on Tuesday, August 19, 2008
Coughlin
BENTONVILLE - Tom Coughlin claims he laid awake at night thinking about Wal-Mart's general counsel's alleged threat concerning Coughlin's wife and children.
Coughlin, Wal-Mart's former vice chairman, made the statement when questioned during a deposition in the legal battle between Coughlin and his former employer.
Jury selection in the case is scheduled to begin Thursday morning.
Coughlin's statements are contained in portions of a deposition that was filed Monday with a motion asking the court to deny Wal-Mart's motion to dismiss his counterclaim against the retailer.
Coughlin's counterclaim seeks unspecified damages from the retailer for emotional distress. Coughlin claims his health has suffered because of the lack of sleep as a result of Tom Mars' statement concerning Coughlin's family. Mars is senior vice president and general counsel for Wal-Mart.
The counterclaim also alleges that Mars attempted to influence then Wal-Mart employee Ed Nagy to provide information that condemned Coughlin, regardless of the accuracy of the information. The counterclaim alleges that Mars told Nagy that he (Mars ) was going to destroy Coughlin and his relationships with his wife, children and friends.
Portions of Nagy's deposition were also included with the filings. Nagy claims that while in his office, Mars pointed at photographs of Coughlin and said," You tell your drunken friend that he needs to plead guilty or he'll get 10 years, and I'm going to destroy his wife, and I'm going to destroy his kids."
Nagy also claims Mars said he was going to destroy Coughlin, according to court documents.
Wal-Mart originally filed the suit against Coughlin in an attempt to void his retirement agreement. The suit claims Coughlin was part of a conspiracy to defraud Wal-Mart. Wal-Mart claims Coughlin misappropriated hundreds of thousands of dollars for his personal benefit through fraudulent transactions.
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 travelreimbursement and vendorinvoice accounting system 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 in August 2006 to five years' probation with 27 of the months on home detention. Coughlin 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.
Prosecutors had requested prison time for Coughlin. Federal prosecutors appealed Coughlin's original sentence. The 8 th U. S. Circuit Court of Appeals sent Coughlin's case back for resentencing.
In February, Dawson let Coughlin's original sentence stand and added 1, 500 hours of community service.
Wal-Mart is seeking to void its retirement agreement with Coughlin, while he wants the court to declare the agreement as valid and binding.
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