Former Wal-Mart Exec Sentence Reexamined

The Eighth Circuit’s U.S. Court of Appeals in St. Louis ruled Aug. 28 that Tom Coughlin, a former executive at Wal-Mart Stores Inc. of Bentonville, should be re-sentenced in the fraud case against him because the court’s sentence was too lenient.

Coughlin was sentenced in August 2006 to 27 months of home detention, five years of probation and ordered to pay $461,000 in fines and restitution after pleading guilty to wire fraud and tax evasion.

The government appealed the sentencing. At issue: the district court’s departure from sentencing guidelines based on Coughlin’s health.

Sentencing guidelines for Coughlin’s case ranged from 27 to 33 months in prison. But Coughlin’s attorneys argued that the now 58-year-old’s health would not hold up in prison. Coughlin has heart problems, back and knee pain, and severe sleep apnea, court documents say.

In its majority opinion, the appeals court held that the district court’s departure from sentencing guidelines did “not fall within the range of reasonableness.” The government and Coughlin’s attorneys will now be able to resubmit evidence for a new sentencing. A court date has not yet been set.