AP Features, March 14th, 2007
An appeal hearing has been set for federal prosecutors to make their case that former Wal-Mart vice chairman Tom Coughlin should have received a harsher sentence than home confinement for his guilty pleas to wire fraud and tax charges.
Oral arguments are set for April 12 before a three-judge panel of the 8th U.S. Circuit Court of Appeals in St. Louis, according to court filings.
Coughlin, 58, was a protege of Wal-Mart Stores Inc. founder Sam Walton. But the world's largest retailer cooperated with prosecutors as Coughlin was shown to have schemed to have the company pay for hunting trips and expensive gifts, worth about $500,000 in all.
Coughlin pleaded guilty a year ago to five wire fraud counts and a single count of filing a false income tax return. On Aug. 11, U.S. District Judge Robert T. Dawson sentenced Coughlin to 27 months home detention, based on defense statements that Coughlin has a heart problem, diabetes and high blood pressure that made him too fragile for prison.
He faced more than 28 years in prison and fines up to $1.35 million. Dawson ordered Coughlin to pay about $460,000 in fines and restitution, which documents show Coughlin has paid. Dawson also sentenced him to five years probation.
Prosecutors appealed the sentence, saying Dawson was too lenient.
Assistant U.S. Attorney David Blackorby argued during the August sentencing hearing that prison medical facilities would provide sufficient care for Coughlin. Blackorby also said that home detention for a man of Coughlin's wealth would not present the burden that it would for people of less means.
Coughlin began serving his home detention sentence at his Centerton home in October.
The oral arguments will be heard by Judges James. B. Loken, Kermit E. Bye and William Jay Riley.
