Former Moody's General Counsel Sentenced to 8 Months for Tax Evasion

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Posted: 25th October 2024

Izabel Modano

Last updated 29th October 2024

Former Moody's General Counsel Sentenced to 8 Months for Tax Evasion.

New Jersey federal judge sentenced John Goggins, 63, of Chatham, New Jersey, the former general counsel of Moody's, to eight months in prison for willfully failing to file his personal federal income tax returns.

The sentencing, which took place on Thursday, follows a federal investigation revealing that John Goggins earned an astonishing $54 million from 2018 to 2021 without submitting any federal income taxes during that period.

U.S. Magistrate Judge Andre Espinosa imposed the sentence, which also includes one year of supervised release and a $40,000 fine. According to a spokesperson from the New Jersey U.S. Attorney's Office, Goggins has already paid over $3.1 million in restitution to the Internal Revenue Service (IRS).

Expressing his regret during the proceedings, John Goggins took full responsibility for his actions, acknowledging the extensive steps he has taken toward accountability and restitution concerning his misdemeanor offenses. "I appreciate the Court for recognizing my efforts to address this matter," he stated.

In April, John Goggins pleaded guilty to four counts of intentionally failing to file tax returns. His attorney, Christopher Ferguson, emphasized that the criminal charges were unrelated to Goggins' long-standing role at the investment analytics firm Moody's. After more than two decades with the company, Goggins resigned in September 2023, with Richard Steele stepping in as the new general counsel.

This case serves as a stark reminder of the legal and personal repercussions that can arise from neglecting tax obligations, regardless of one’s professional stature. As John Goggins begins his prison sentence, the financial and reputational consequences of his actions will likely resonate within both the corporate and legal communities.