Thomas C. Goldstein, a highly respected Supreme Court lawyer and co-founder of the popular legal blog SCOTUSblog, has been indicted on federal tax evasion charges in Maryland. Goldstein, who is known for his extensive experience before the U.S. Supreme Court, is accused of evading taxes by failing to report substantial gambling winnings and using his law firm’s funds to pay off personal debts tied to high-stakes poker games. The charges, filed on Thursday, highlight a multi-year scheme from 2016 to 2022 in which Goldstein allegedly diverted more than $5 million from his law firm to cover personal losses, all while underreporting his gambling income to the IRS.
Poker winnings and the path to alleged tax evasion:
As NBC New York reports, Goldstein, 54, has a distinguished legal career, having represented Vice President Al Gore in the Bush v. Gore case and secured victories for major corporations such as Google. He co-founded SCOTUSblog, a site that provides in-depth analysis of Supreme Court cases, and has taught at Harvard Law School. However, the indictment paints a different picture of the lawyer’s finances, involving millions in poker winnings and losses that went unreported to federal authorities.
The indictment paints a vivid picture of Goldstein’s foray into high-stakes poker, where he allegedly won and lost millions over the span of several years. In 2016, Goldstein’s poker earnings amounted to approximately $50 million, with wins including a $13.8 million victory against a foreign gambler in Asia and a subsequent $26.4 million win from a California businessman in Beverly Hills. Despite these remarkable successes, Goldstein is said to have failed to report nearly $4 million of his poker earnings for that year on his tax returns, further compounding the allegations of tax evasion.
Goldstein’s poker career, which began with modest beginnings, saw him playing in some of the world’s most exclusive and high-stakes games, both in the U.S. and abroad. According to the indictment, Goldstein used funds from his law firm, Goldstein & Russell, to cover losses from these games. This included diverting legal fees meant for the firm into his personal accounts to settle gambling debts.
In addition to tax evasion, Goldstein is accused of several other financial misdeeds. From 2016 through 2021, he allegedly misused firm funds to pay off debts, including gambling-related expenses. The indictment details how Goldstein used over $1 million of Goldstein & Russell’s money to cover personal poker debts, falsely categorizing these payments as legitimate business expenses. Furthermore, the indictment reveals that he employed several women who performed little or no work at the firm but were still paid salaries and provided health benefits. Four of these women were allegedly involved in intimate relationships with Goldstein.
Another aspect of the charges involves Goldstein’s interactions with mortgage lenders. In 2021, he submitted false statements to secure a $1.98 million loan for a property in Washington, D.C. The indictment claims Goldstein failed to disclose significant financial liabilities, including over $14 million in poker-related debts, as well as unpaid taxes. His misrepresentations allowed him to secure financing for the property, despite his mounting financial troubles.
Poker debt and continued gambling losses:
Goldstein’s gambling losses continued well beyond his initial wins. By 2017, after losing nearly $10 million in a series of poker matches, he allegedly sought to cover his losses using firm funds. The indictment suggests that Goldstein’s personal debts reached $14 million by 2021, with substantial sums owed to multiple individuals involved in the high-stakes poker world.
In addition to poker, Goldstein’s financial dealings included cryptocurrency transactions. The indictment alleges that in 2021, he conducted $8 million in crypto transactions, which he failed to report on his tax forms. These transactions, combined with his gambling debts and failure to pay taxes, paint a picture of a man struggling with a spiraling financial situation.
Goldstein’s legal team has strongly contested the charges, with his attorneys issuing a statement calling the indictment a “rush to judgment” and asserting that Goldstein is “a prominent attorney with an impeccable reputation.” His lawyers, John Lauro and Christopher Kise, emphasized that Goldstein intends to “vigorously contest these charges” and expressed confidence that he will be exonerated at trial.
Meanwhile, a former colleague of Goldstein’s, Kevin Russell, declined to comment on the indictment but clarified that his own law firm, Russell & Woofter, had no connection to Goldstein or the allegations.
Goldstein’s connection to the poker world dates back to 2003, when he first became enamored with the game after watching the World Series of Poker. He quickly rose through the ranks of high-stakes players, winning significant amounts at the Bellagio in Las Vegas. Goldstein’s poker persona has often been described as reckless, with reports from 2008 describing him as a player who took wild risks, betting large sums without even looking at his cards.
His notoriety in poker circles is matched by his legal career, where he has argued more Supreme Court cases than most attorneys in private practice. His connections to the poker world are not limited to his personal games; he has represented poker players in legal matters, including serving as counsel for the Poker Players Alliance, which lobbied for the legalization of poker in the U.S.
Despite his success in both law and poker, the current indictment casts a shadow over his distinguished career. If convicted, Goldstein faces significant prison time, with each tax evasion charge carrying a potential five-year sentence, and additional penalties for making false statements and other financial crimes.
