A federal jury in Greenbelt, Maryland has found Thomas C. Goldstein, co-founder of SCOTUSblog guilty of tax fraud and mortgage fraud. Goldstein is a well-known appellate lawyer who argued more than 40 cases before the U.S. Supreme Court.
Prosecutors said Goldstein cheated the tax system and lied to mortgage lenders. Officials described him as an experienced attorney who hid millions of dollars in income and manipulated financial records to support his gambling and expensive lifestyle.
Justice Department officials thanked the jury and said the verdict shows that no one is above the law. They stated that the government will continue to pursue people who avoid taxes or mislead banks and financial institutions.
The FBI and IRS Criminal Investigation division also emphasized that mortgage and tax laws exist to protect the public. They said the conviction sends a strong message that fraud will be investigated and prosecuted.
U.S. Sanctions 2 Swiss Lawyers Over Russian Money Transfers
How SCOTUSBlog founder Hid Income and Avoided Taxes
According to evidence presented in court, Goldstein owned a law firm called Goldstein & Russell, P.C., which handled appeals, including cases before the U.S. Supreme Court. He was also a high-stakes poker player and participated in games involving millions of dollars.
Between 2016 and 2023, prosecutors said Goldstein failed to properly pay his taxes. They stated that he hid large poker winnings and losses from the government. He also redirected legal fees meant for his law firm into his personal accounts to pay gambling debts.
In addition, he allegedly used company money to cover poker losses and falsely labeled those payments as business expenses in the firm’s records. Because of this, he reported less income than he actually earned and did not pay the full amount of taxes owed. During this time, prosecutors said he spent millions of dollars on poker, travel, and luxury items.
False Mortgage Applications and Possible Prison Sentence
In 2021, Goldstein applied for loans from two mortgage companies to buy a $2.6 million home in Washington, D.C. On those applications, he was required to list all debts and financial obligations.
Prosecutors said he failed to disclose millions of dollars in liabilities, including more than $14 million in promissory note debt and unpaid taxes owed to the IRS. Because of those false statements, he was able to secure a $1.98 million loan from one lender.
The jury convicted Goldstein of tax evasion, helping prepare false tax returns, failing to pay taxes on time, and making false statements to mortgage lenders.
Read the Original Press Release from DOJ
He now faces serious penalties. Tax evasion carries up to five years in prison. Each count related to false tax returns carries up to three years. Failing to pay taxes can result in up to one year per count. Making false statements to mortgage lenders carries a possible sentence of up to 30 years per count.
A federal judge will decide his final sentence at a later date. The case was investigated by IRS Criminal Investigation and the FBI, and prosecuted by federal attorneys in Maryland.