Source: United States Attorneys General
Defendant Allegedly Did Not Report Millions in Poker Winnings and Falsely Omitted Over $14M in Debts to Obtain Loan
A federal grand jury in Greenbelt, Maryland, returned a 22-count indictment today, charging a Maryland attorney with tax evasion, assisting in the preparation of false tax returns, failure to pay taxes and making false statements to two separate mortgage lenders.
According to the indictment, between 2016 and 2023, Thomas C. Goldstein, of Chevy Chase, Maryland, and Washington, D.C., 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 allegedly also a high-stakes poker player, frequently playing in games involving millions of dollars.
During that time, Goldstein allegedly engaged in a scheme to evade his taxes. Goldstein allegedly took various steps to carry out his scheme including diverting legal fees that were due to the law firm to his personal bank account, and then using them to pay personal poker-related debts; using the law firm’s assets to satisfy his personal poker debts and causing those payments to be falsely classified as “legal fee” expenses on the firm’s books and records; and using firm assets to pay salaries and health insurance premiums for people with whom Goldstein had a personal relationship but who performed little or no work for the law firm and did not qualify for its health insurance.
Goldstein also allegedly did not report, or falsely understated, millions of dollars of gambling winnings on his tax returns. In addition, for 2016 through 2021, except 2018, Goldstein allegedly did not pay the taxes he self-reported were due on his returns, while simultaneously spending millions of dollars on personal expenses such as gambling debts, travel, vacation rentals and luxury goods.
In 2021, Goldstein also allegedly 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 allegedly omitted millions of dollars of liabilities, including over $14 million he owed at the time on two promissory notes, as well as taxes he owed to the IRS. Goldstein’s false statements to one of the mortgage lenders allegedly resulted in his obtaining a $1.98 million loan.
If convicted, Goldstein faces a maximum penalty of five years in prison for each of the tax evasion charges; a maximum penalty of three years in prison for each count of assisting in the preparation of false tax returns; a maximum penalty of one year in prison for each of count of willful failure to pay taxes; and a maximum penalty of 30 years in prison for each count of making false statements to mortgage lenders. He also faces a period of supervised release, monetary penalties and restitution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS Criminal Investigation and the FBI are investigating the case.
Senior Litigation Counsel Stanley Okula and Trial Attorneys Emerson Gordon-Marvin and Hayter Whitman of the Tax Division and Assistant U.S. Attorney Patrick Kibbe for the District of Maryland are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.