DOJ reveals SCOTUS attorney failed to report millions from poker earnings

Supreme Court attorney Tom Goldstein (UNC School of Law/YouTube).

A prominent lawyer, well-known for his involvement in high-profile cases and his role in co-founding the renowned Supreme Court news and analysis platform SCOTUSblog, is facing federal tax evasion charges. Tom Goldstein, the attorney in question, allegedly failed to report millions of dollars obtained through high-stakes poker matches, according to federal prosecutors. Moreover, he stands accused of utilizing his previous law firm’s resources to settle gambling debts.

The Department of Justice has leveled serious allegations against Goldstein in a 22-count indictment filed in the District of Maryland last week. It is claimed that between 2016 and 2022, Goldstein orchestrated a scheme to evade tax assessments, submitted false tax returns, and neglected to fulfill his tax responsibilities promptly.

Aged 54, Goldstein has been a key figure in over 40 cases presented before the Supreme Court, notably including the contentious legal battle over the 2000 presidential election involving his client Al Gore and George W. Bush. Alongside his spouse Amy Howe, he established SCOTUSblog back in 2002. In 2023, Goldstein announced his retirement and parted ways with his former firm, Goldstein & Russell P.C.

“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,” DOJ prosecutors state in a Jan. 16 press release. “Goldstein was allegedly also a high-stakes poker player, frequently playing in games involving millions of dollars.”

DOJ prosecutors say Goldstein — an expert at Texas Hold ’em — willfully failed to pay more than $5.3 million in taxes that he allegedly owed the IRS. He “falsely understated his gambling winnings” by more than $3.9 million on his 2016 Form 1040, according to his indictment, causing the filing of a false Form 1040 and the evasion of a substantial amount of his 2016 income tax.

“In March 2018, Goldstein falsely told an IRS Revenue Officer seeking to collect his unpaid taxes for 2016 that his unpaid tax liability for that year was attributable to a legal case resulting in a large payment to Goldstein whereas, in truth, his liability was attributable principally to gambling income,” the indictment says. “Goldstein used over $1.1 million of G&R funds to pay personal debts in 2016, including gambling debts owed to poker players … causing the filing of false Forms 1120S and 1040 and the evasion of a substantial amount of his 2016 income tax.”

Between March 2016 and late December 2016, Goldstein allegedly engaged in a series of heads-up poker matches — those that involve only two people playing against each other — with three “ultra-wealthy individuals,” according to prosecutors. Two of them were located in Asia and one in Beverly Hills, California, per the indictment.

He allegedly won over $50 million.

“In preparation for these matches, Goldstein sought and obtained guidance and coaching from two professional poker players, as well as others, to study the historical playing patterns and betting strategies of his three opponents and hone his strategy against them,” the indictment says.

Goldstein allegedly won $13.8 million in his first match against one of the opponents in Asia, who is described in the indictment as “Foreign Gambler-1.” He allegedly won $26.4 million against the man in the United States — identified as “California Businessman-2” — and $8.8 million against the other opponent in Asia, “Foreign Gambler-2.”

“In addition to the 2016 poker matches described above, Goldstein was involved in other heads-up and ringpoker matches during 2016 in which he lost millions of dollars,” the indictment says. “To pay some of those gambling debts, Goldstein caused four wire transfers totaling $871,600 to be sent from the G&R bank account to the winners of those matches. Goldstein also caused wire transfers in the amounts of $200,000 and $100,000 to be sent from the G&R bank account to California Businessman-1 to pay down the amounts Goldstein owed.”

Prosecutors say Goldstein “failed to inform” his former law firm that payments he was sending — totaling over $1.1 million — were to “satisfy his personal debts rather than those of G&R,” which led to the transfers being falsely classified as “Legal Fee” expenses.

Speaking to CNBC, Goldstein’s lawyers John Lauro and Christopher Kise — both of whom have represented Donald Trump in high-profile cases of his own — described Goldstein last week as a “prominent attorney with an impeccable reputation” who should be treated as innocent until proven guilty.

“We are deeply disappointed that the government brought these charges in a rush to judgment without understanding all of the important facts,” they told the outlet in a statement. “Our client intends to vigorously contest these charges and we expect he will be exonerated at trial.”

In addition to tax evasion, Goldstein is charged with aiding and assisting the preparation of false tax returns, willful failure to pay taxes, and false statement on loan applications.