Supreme Court litigator convicted of tax evasion over income from high-stakes poker
WASHINGTON (AP) — A prominent Supreme Court litigator who also published a popular blog about the nation’s highest court was convicted Wednesday of tax evasion and related charges stemming from his secret lifestyle as an ultra-high-stakes poker player.
Federal jury found SCOTUSblog co-founder Thomas Goldstein guilty of 12 counts 16 counts after a while six week trial in Greenbelt, Maryland. Jurors deliberated for about two days before convicting Goldstein on one count of tax evasion, four counts of aiding and assisting in the preparation of false tax returns, four counts of knowingly failing to pay taxes on time and three counts of making false statements on loan applications.
Goldstein was accused of failing to pay taxes on millions of dollars in gambling revenue. Justice Department prosecutors also accused him of diverting money from his law firm to pay gambling debts and falsely deducting gambling debts as a business expense.
Goldstein argued more than 40 cases before the Supreme Court before retiring in 2023. He was part of the legal team that represented Democrat Al Gore in the Supreme Court case related to the 2000 election that was ultimately won by Republican President George W. Bush.
Goldstein’s indictment a year ago sent shockwaves through the legal community in Washington, DC. Many of his friends and colleagues did not know the extent of his gambling.
“He lied to everyone around him,” Justice Department prosecutor Sean Beaty said during closing arguments of the trial.
Defense attorney Jonathan Kravis said the government rushed its decision and did not adequately investigate the case. Kravis told jurors that Goldstein made “innocent mistakes” on his tax returns but did not cheat on his taxes or knowingly misrepresent his tax returns.
“A mistake is not a crime,” he said.
Beaty described Goldstein as a “willful tax evader.” According to Beaty, Goldstein earned approximately $50 million from poker in 2016; this includes the nearly $22 million he earned in Asia. The tax evasion scheme “collapsed” when another gambler, who felt cheated by Goldstein, reported a 2016 debt to the attorney to the IRS, the prosecutor said.
“This was a textbook tax evasion scheme,” Beaty said. “And Mr. Goldstein executed it almost flawlessly.”
The “Spider-Man” star’s statement was also included in the hearing that started on January 12. Tobey Maguirean avid poker player who enlists Goldstein’s help to collect a billionaire’s gambling debt.
Testifying in his own defense, Goldstein denied any wrongdoing. He said he repeatedly instructed his law firm’s staff and accountants to accurately describe his personal expenses. In a 2014 email, he told a company employee that “we always play completely by the rules.”
Goldstein was also accused of lying to IRS agents and hiding his gambling debts from his accountants, employees and mortgage lenders. The indictment alleges that he excluded $15 million in gambling debts from his mortgage loan applications while he and his wife were looking for a new home in Washington, D.C., in 2021.
“When he gave up his gambling debts, he was only thinking about his wife,” Kravis said.
