Tom Goldstein, a poker player, distinguished attorney and co-founder of the influential SCOTUSblog, has been indicted on 22 counts of tax evasion.
The allegations against Goldstein reveal a complex web of financial misconduct spanning several years.
Goldstein, 54, has long been recognised as a leading figure in American law. His impressive resume includes arguing 44 cases before the U.S. Supreme Court and teaching Supreme Court advocacy at prestigious universities such as Harvard and Stanford.
However, his legal acumen has been overshadowed by his involvement in high-stakes poker, where he is thought to have won in the region of $51 million from mega-rich opponents between 2016 and 2017.
It sounds like he was onto a winner being invited to these private games but, however, it all soon spiraled into a series of financial missteps that would ultimately lead to his indictment.
Tom Goldstein Evades Millions in Federal Taxes
The indictment details how Goldstein allegedly engaged in a scheme to evade millions in federal taxes while using funds from his law firm, Goldstein & Russell, P.C., to cover gambling debts.
Prosecutors assert that he misrepresented his financial situation to lenders while seeking a mortgage for a $2.6 million home in Washington, D.C., omitting over $14 million in debt at the time.
He is then alleged to have diverted firm funds to pay salaries and health insurance for women with whom he had personal relationships but who performed little or no work for the firm.
Tom Goldstein’s High- Stakes Poker Career
Goldstein’s foray into high-stakes poker kicked off around March 2016 when he was invited into private games against wealthy individuals in locations such as Beverly Hills and Macau.
The indictment reveals that Goldstein’s gambling activities were not just casual pastimes; they were actually central to his financial strategy.
In 2016 alone, he understated his gambling winnings by $3.9 million on his tax returns.
The situation escalated when Goldstein returned from Macau with nearly $1 million in cash winnings but failed to report this amount to the IRS.
As time passed, he continued to deny making trades in cryptocurrency despite logging more than $10 million worth of transactions. Prosecutors are arguing that these actions illustrate a pattern of deceit that was designed to conceal his gambling losses and evade tax obligations.
Goldstein’s alleged misconduct also included using legal fees due to his firm for personal expenses related to poker debts.
This diversion of funds is almost certainly a violation of fiduciary duty — an area where legal professionals are expected to maintain the highest standards of integrity.
Tom Goldstein’s Poker Connections
While the indictment does not name specific individuals involved in Goldstein’s poker games, it does hint at connections with prominent figures in the gambling world.
Notably, Malaysian businessman Paul Phua has been linked to Goldstein through previous legal representation and shared participation in high-stakes games.
Goldstein represented Phua in a case heard in Las Vegas where he was accused of running illegal online bookmakers. A Chinese investigation into an almost identical setup led to a raid and shutdown in the months before.
Goldstein has also made some public appearances in both high-stakes tournaments and cash games.
In 2018, he played at the Triton Super High Roller Montenegro and more recently at Hustler Casino Live where he was the “masked man” in the $1,000,000 buy-in cash game.
As for the future, Tom Goldstein is facing five years in prison for each tax evasion charge. And with financial law being how it is, there are also three years for tax falsification for each charge and one year for each for willful failure to pay taxes.
Most worryingly for the defendant, the two charges of making false statements to mortgage lenders come with 30 years potential prison time each.
The future certainly doesn’t look bright but at least Goldstein’s lawyers will be fighting hard to defend all charges which have been denied.
John Lauro of Lauro & Singer and Christopher Kise of Continental said:
“Mr. Goldstein is a prominent attorney with an impeccable reputation. We are deeply disappointed that the government brought these charges in a rush to judgment without understanding all of the important facts. Our client intends to vigorously contest these charges and we expect he will be exonerated at trial.”
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