Prominent Lawyer Convicted at Trial of Tax Evasion and Mortgage Fraud

The SCOTUSblog Founder Hid Millions in Gambling Income and Debts A federal jury in Greenbelt, Maryland convicted Thomas C. Goldstein — a prominent appellate attorney who argued more than 40 cases before the U.S. Supreme Court and co-founded the widely read legal website SCOTUSblog — yesterday of tax and mortgage fraud. “I thank the jurors for their service and careful attention during this lengthy trial,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Yesterday’s verdict holds Thomas Goldstein accountable for cheating the tax system and lying to mortgage lenders. Mr. Goldstein is a sophisticated attorney who concealed millions of dollars in income, manipulated his law firm’s books and deceived lenders – all to fund his gambling and lifestyle. This investigation, prosecution, and conviction reflects the dedicated work of the prosecutors and agents who brought this case to trial on behalf of the United States. The Criminal Division will continue to pursue those who evade their tax obligations and mislead financial institutions.” According to court documents and evidence presented at trial, Goldstein, of Chevy Chase, Maryland, was the sole owner of Goldstein & Russell, P.C., a boutique law firm specializing in appellate litigation, including litigation before the U.S. Supreme Court. Goldstein was also a high-stakes poker player, frequently playing in games involving tens of millions of dollars. Between 2016 and 2023, Goldstein stopped paying taxes on time, as required by law, and engaged in a scheme to evade his taxes for 2016. Goldstein carried out the scheme by hiding millions of dollars in poker wins and losses from the government, diverting legal fees payable to his law firm to his personal bank account to satisfy poker-related debts, directing people to pay his creditors instead of sending payments directly to him, and using the law firm’s assets to satisfy his poker debts and then causing those payments to be falsely classified as “legal-fee” expenses on the firm’s books and records. As a result, Goldstein underreported his income and did not pay all the taxes that he owed, while spending millions on personal expenses such as poker, travel and luxury goods. In 2021, Goldstein submitted false mortgage applications to two separate mortgage lending companies, seeking financing to purchase a $2.6 million dollar home in Washington, D.C. On those mortgage applications — which required Goldstein to list all his liabilities and debts — Goldstein omitted millions of dollars of liabilities, including more than $14 million he owed at the time on two promissory notes, as well as taxes he owed the IRS. Goldstein’s false statements to one of the mortgage lenders enabled him to obtain a $1.98 million loan. The jury convicted Goldstein of tax evasion, assisting in the preparation of false tax returns, willful failure to timely pay taxes and making false statements to mortgage lenders. He faces a maximum penalty of five years in prison for tax evasion, three years in prison for each count of helping to prepare false tax returns, one year in prison for each count of willful failure to pay taxes, and 30 years in prison for each count of making false statements to mortgage lenders.