“It’s not good news when somebody else enters into a plea agreement... and you’re still the subject of an investigation,” said Michael Mullane, a criminal law professor at the University of Arkansas in Fayetteville.

Coughlin, a former Wal-Mart vice chairman, resigned from the world’s largest retailer in March, when Wal-Mart forwarded his file to federal prosecutors in Fort Smith with the claim that he tricked the company out of up to $ 500, 000.

On Monday, a Wal-Mart vice president known to work under Coughlin pleaded guilty, in an agreement with prosecutors, to three counts of wire fraud. Under the deal, Robert E. Hey Jr. will serve no prison time and prosecutors will recommend the minimum fine.

As part of the court papers accompanying Hey’s plea, federal prosecutors specifically outlined tens of thousands of dollars that they say Hey illegally funneled through Wal-Mart and to an unnamed senior executive called “John Doe.”

Perry Binder, a legal studies professor at Georgia State University, said that, in the process of a wide-ranging investigation, prosecutors often seek deals with lower-ranking wrongdoers to capture testimony against the ringleaders.

“It’s not uncommon for a prosecutor to go after a small fish to try to link it to a bigger fish,” Binder said. “But it’s unclear at this time if there is a connection, because grand juries are couched in utter secrecy.”

If Hey testifies — or has testified — before a Fort Smith grand jury, jurors would know that he had struck a deal with prosecutors, Mullane said, so they could put what he said into context.

Coughlin has other legal troubles, as well. Wal-Mart filed a civil suit against him seeking to void his retirement package. Last week a Benton County judge dismissed much of the suit, saying the parties had agreed not to sue one another over any events that happened during Coughlin’s tenure. Wal-Mart filed a revised complaint Friday.

If a grand jury comes down with indictments against Coughlin, that could open the door for Wal-Mart to seek its restitution, Mullane said.

“In the event Coughlin is indicted and eventually convicted in the criminal case, the court may order restitution,” Mullane said. “The basic concept is, if money was taken illegally, the court can order it to be restored as part of the sentence.”

Wal-Mart amended its lawsuit because it believes Coughlin negotiated a lavish deal last year knowing he had misused $ 500, 000 in Wal-Mart cash and property.

But many other questions remain. Is Coughlin the senior executive known as “John Doe” throughout the court filing accompanying Hey’s plea ? Much of the case laid out against Hey is similar to Wal-Mart’s previous complaints about Coughlin.

Did Hey already testify before the Fort Smith grand jury investigating Coughlin ?

It’s all speculation, Mullane says.

“You won’t know this until and unless Mr. Coughlin or anyone else gets indicted and that indictment gets unsealed,” he said.

Sam Perroni, a longtime federal prosecutor in the 1970 s before he became a Little Rock defense attorney 26 years ago, said Coughlin and his defense team should be prepared.

“You always have to be concerned if there’s an investigation and there are people pleading guilty to offenses that are similar to what the federal government is looking into on you,” Perroni said.