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 — of tax and mortgage fraud.
Court documents say that 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 allegedly failed to pay his taxes on time as required by law and engaged in a scheme to evade his 2016 tax liability.
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.
Goldstein allegedly underreported his income and failed to pay all the taxes he owed, while spending millions on personal expenses, including poker, travel, and luxury goods.
“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 reflect 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.”
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In 2021, Goldstein submitted false mortgage applications to two separate mortgage lending companies, seeking financing to purchase a $2.6 million 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.
“Goldstein chose fraud and deceit over honesty and tried to cheat the American taxpayer while living a lavish lifestyle,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “He gambled that he wouldn’t get caught, and that gamble did not pay off. Our office, along with our law-enforcement partners, is committed to holding those accountable who break the law, no matter who they are.”
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. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has not been set.
"Mortgage laws exist to protect lenders and borrowers from fraudsters like Goldstein," said Assistant Director in Charge Darren Cox of the FBI Washington Field Office. "His conviction should serve as a message to all prospective homebuyers: The FBI will investigate and bring to justice individuals who try to cheat the system by lying on their mortgage applications, so we can level the playing field for every hardworking American who wishes to buy a home."
IRS Criminal Investigation and the FBI are investigating the case.
“This is precisely the type of conduct IRS Criminal Investigation (IRS-CI) and our law enforcement partners are committed to deterring,” said Special Agent in Charge Kareem A. Carter of the IRS-CI Washington, D.C. Field Office. “Today’s conviction of the defendant sends a clear message that we have the tools and resolve to protect our tax system by investigating, prosecuting, and holding accountable those who seek to defraud the United States.”
Senior Litigation Counsel Sean Beaty and Trial Attorneys Emerson Gordon-Marvin and Hayter L. Whitman of the Criminal Division’s Tax Section, and Assistant U.S. Attorney Adeyemi Adenrele for the District of Maryland, are prosecuting the case.
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