Prominent Appellate Lawyer and SCOTUSblog Co-Founder Thomas Goldstein Convicted of Tax Evasion and Mortgage Fraud

Greenbelt, Maryland – A federal jury has convicted Thomas C. Goldstein, a prominent appellate attorney known for his extensive work before the U.S. Supreme Court and as a co-founder of the legal website SCOTUSblog, of multiple counts of tax evasion and mortgage fraud. The conviction follows a trial where evidence presented to the jury detailed a scheme to conceal millions of dollars in gambling income and debts from the government and mortgage lenders.

The jury found Goldstein, 55, of Chevy Chase, Maryland, guilty of tax evasion, assisting in the preparation of false tax returns, willfully failing to pay taxes in a timely manner, and making false statements to mortgage lenders. These charges stem from actions allegedly taken between 2016 and 2023, during which Goldstein was the sole owner of Goldstein & Russell, P.C., a law firm specializing in appellate litigation. Evidence presented at trial indicated that Goldstein was also a high-stakes poker player, involved in games with stakes in the tens of millions of dollars.

According to the prosecution’s case, Goldstein ceased paying his taxes on time as required by law and engaged in a deliberate effort to evade his tax obligations for 2016. This alleged scheme involved hiding substantial poker winnings and losses from tax authorities. The prosecution also presented evidence that Goldstein diverted legal fees meant for his law firm to his personal bank account, intending to use these funds to cover gambling-related debts. Additionally, he is accused of instructing others to pay his creditors directly, bypassing traditional payment channels, and utilizing firm assets to settle his poker debts. These transactions were reportedly misrepresented as “legal-fee” expenses in the firm’s financial records, leading to an underreporting of income and unpaid taxes. The funds allegedly saved from tax obligations were then used for personal expenditures, including gambling, travel, and the purchase of luxury goods.

In addition to the tax-related charges, Goldstein also faces convictions for making false statements on mortgage applications. In 2021, he allegedly submitted fraudulent applications to two mortgage lenders in an effort to secure financing for a home valued at $2.6 million in Washington, D.C. These applications required the disclosure of all liabilities and debts. However, the prosecution claims Goldstein omitted millions of dollars in financial obligations, including over $14 million owed on two promissory notes and significant tax liabilities owed to the IRS. These alleged misrepresentations reportedly allowed him to secure a loan of $1.98 million from one of the lenders.

The potential penalties Goldstein faces are substantial. He could receive a maximum of five years in prison for tax evasion. For each count of assisting in the preparation of false tax returns, the maximum penalty is three years. Willfully failing to pay taxes carries a potential one-year sentence for each instance, and the charges of making false statements to mortgage lenders carry a maximum of 30 years in prison per count. A federal district court judge will determine the final sentencing, taking into account federal sentencing guidelines and other statutory factors. A sentencing date has not yet been scheduled.

The investigation and prosecution involved a coordinated effort between multiple federal agencies. U.S. Attorney Kelly O. Hayes for the District of Maryland, Assistant Attorney General A. Tysen Duva of the Department of Justice’s Criminal Division, Special Agent in Charge Kareem A. Carter of the IRS-Criminal Investigation’s Washington D.C. Field Office, and Assistant Director in Charge Darren Cox of the FBI’s Washington Field Office announced the conviction. U.S. Attorney Hayes emphasized the commitment to holding individuals accountable for breaking the law, regardless of their standing. The Department of Justice stated its continued dedication to pursuing those who evade tax obligations and mislead financial institutions. The IRS-Criminal Investigation highlighted its role in protecting the tax system and deterring fraudulent conduct. The FBI highlighted the importance of mortgage laws in protecting consumers and ensuring fairness in homeownership.

Article by Mel Anara, based upon information from the U.S. Attorney’s Office, District of Maryland

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