We've written a bit about Wal-Mart's raking in hundreds of millions of dollars from a dead-employees scam, but a revelation in the court documents filed yesterday in Florida added an extra level of evil to the plan by revealing where the money went.
Wal-Mart ... says the program was intended to reduce its income taxes to help pay rising employee health care costs.
Wal-Mart collected $9.6 million from just 132 of the 135 employees insured in Florida alone. The company is offering to settle for $7.2 million.
Attorney, Michael Myers, who has successfully sued the corporation in other states, says Wal-Mart secretly insured about 350,000 employees nationwide. The policies were taken out on all full-time Wal-Mart employees who, in December 1993, were between ages 18 and 70 and participated in the medical benefits plan.
I have three questions. First, when Wal-Mart canceled the outstanding policies in 2000, how many were there? Second, were the policies term life insurance in which case Wal-Mart would not have recovered any money, or some form of whole-life or annuity which would have returned a portion of the money to the company? Third, did Wal-Mart in anyway use the policies as securities to obtain loans from either the insurance companies or other lending institutions? What questions do you have? Jeff Hess: Have Coffee Will Write.

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