Wal-Mart accuses Coughlin of fraud, forgery

The world's biggest retailer, Wal-Mart, has accused its Irish-American former vice-chairman, Tom Coughlin, of misappropriating hundreds of thousands of dollars of company money for himself through fraud, forgery and misrepresentation.

In the fullest account so far of the allegations against Mr Coughlin, who resigned earlier this year, Wal-Mart said he used false invoices and false travel and expense vouchers to pay for food, clothes, beer, wine, holidays and hunting supplies for more than 10 years.

The company reproduced an e-mail to Mr Coughlin from his wife in which she asked whether he could get a computer and printer as a graduation present for their son. Later that day, Mr Coughlin asked a subordinate to procure a "latest ... greatest" laptop, which he gave to his son.

A winner last year of the Ireland-US Council Award for Outstanding Achievement, Mr Coughlin was among the most prominent figures in the Irish-American business scene. He is a frequent visitor to Ireland and has a home at a K-Club in Co Kildare.

His lawyer, William Taylor III, has denied the allegations, which are the subject of a criminal investigation. He accused the retailer of failing to make available documents on which the claims are based. "We deplore the unfairness with which Wal-Mart is treating one of its loyal and most valuable leaders," Mr Taylor said.

Details of the allegations against Mr Coughlin emerged in a legal submission to the US Department of Labour in response to a whistleblower complaint from one of Mr Coughlin's subordinates, Jared Bowen.

Mr Bowen claims he was sacked last March after reporting Mr Coughlin's activities, in violation of whistleblower protection clauses in the Sarbanes-Oxley Act. Wal-Mart says he was involved in perpetrating the alleged fraud scheme and wanted "to divert suspicion from himself".

The Wal-Mart submission said Mr Coughlin used corporate assets to pay personal expenditures - from the petty to the extravagant - including electronic equipment, gifts for family members, an $8,500 (€7,059) all-terrain vehicle, a $10,000 customised hunting vehicle and a hunting lease for which Mr Coughlin improperly diverted some $30,000 in company funds over several years.

"Coughlin executed this scheme through illegal devices that included forgery, misrepresentation and fraud, and through the misuse of corporate funds, property, and purchasing authority available to him as an officer of the company.

"The scheme depended on subordinates who were willing to follow Coughlin's instructions even when they knew their conduct violated Wal-Mart policies and controls and, in many cases, federal and state law."

Additional reporting: Financial Times service