Things like expensive homes, private jets, and condos on the coast are more often associated with celebrities than they are with insurance executives, except in the case of John Goff. Formerly the President and CEO of the Goff Group, he now faces a number of years in prison -- a far cry from his previously lavish lifestyle and $1 million annual salary.
The Goff Group, based in Montgomery, Ala., supplied workers' compensation insurance to a number of businesses in the Southeast. One of these companies was XL America, whose premiums Goff stopped paying in order to fund his own lifestyle. In total, Goff withheld about $4 million in premiums from two subsidiaries of XL America: XL Specialty Insurance and Greenwich Insurance Co.
Goff was convicted in federal court of 23 counts of mail fraud, and one count each of both filing false documents with the state Department of Insurance, and embezzlement. He was sentenced on June 2, 2009, to 12 years in prison for embezzling money, and was ordered by U.S. District Judge Myron Thompson to pay $5 million in restitution to XL America Insurance Company. As of now, the Goff Group is facing bankruptcy, and Goff remains free on bail until he reports to prison on July 31.
Goff is appealing his conviction, and says of the case that it was a civil dispute that never should have been in criminal court.
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