Wal-Mart says fired employee not a ‘whistleblower’

CHICAGO (Reuters) – Wal-Mart Stores Inc. said a former
employee who brought a whistleblower lawsuit against it was
fired because he helped a former vice chairman misappropriate
funds.

In a filing with the U.S. Labor Department released on
Thursday, the world’s biggest retailer publicly detailed for
the first time its claims that former Vice Chairman Thomas
Coughlin misappropriated hundreds of thousands of dollars from
the company to buy personal items, including customized dog
kennels, vacations, food, clothing and liquor.

Coughlin resigned in March following an internal
investigation into improper use of gift cards and other
expenses. Through his lawyers, he has denied the allegations.

The retailer said Jared Bowen, who was fired on March 30
and has since filed a whistleblower lawsuit, was “involved in
an extensive scheme to misappropriate corporate assets for the
personal benefit of Tom Coughlin.” Bowen headed a department
that approved expenses.

Bowen’s attorney, Steve Kardell, said he would comment
later on Friday. In his lawsuit, Bowen said he was fired after
reporting questionable expenses.

Wal-Mart contends that Bowen reported two improper expense
vouchers only after several of Coughlin’s friends were
investigated and fired.

Wal-Mart’s 25-page filing details what the retailer called
a more than 10-year “fraudulent scheme” in which Coughlin
misappropriated money to pay for personal expenditures “ranging
from the petty to the extravagant.”

Wal-Mart said Coughlin spent more than $30,000 in company
funds on a hunting lease, $10,000 on a customized hunting
vehicle, and $8,500 for an all-terrain vehicle.

“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,” the filing
said.

Wal-Mart said many of those subordinates were in the
company’s operations development department, which Bowen headed
at the time he was fired.

The retailer said the incident that ultimately led to
Coughlin’s resignation and Bowen’s firing involved 51 Wal-Mart
gift cards of $100 each that Coughlin asked Bowen to buy as a
reward to “All-Star” employees for superior performances.

Wal-Mart alleges that Coughlin instead used the cards
himself to buy items ranging from 12-gauge shotguns to a Celine
Dion CD.

Wal-Mart contends that Bowen cooperated with Coughlin
because the previous department head had told him he could
become an officer of the company if he helped the Coughlin.

The retailer said Coughlin presented one of the gift cards
to buy contact lenses at a Wal-Mart store in January 2005. The
employee who handled the transaction called Wal-Mart’s
Bentonville, Arkansas, headquarters to get help from someone
familiar with the gift card program.

The Bentonville staffer noticed that the card had been
activated under a code for top-performing “All-Stars,” who are
normally lower level employees, and she couldn’t understand why
a top executive like Coughlin would have received it.

That employee reported the incident.