A prominent attorney with a taste for high-stakes gambling and luxury living was sentenced to prison in July.
Thomas Goldstein, a well-respected litigator who argued more than 40 cases before the U.S. Supreme Court, asked the U.S. District Court Judge not to sentence him to prison. He then received a six-year prison sentence, followed by five years of supervised release, along with more than $3 million in restitution plus forfeiture.
In addition to his private practice, Goldstein co-founded the highly regarded SCOTUSblog. So how did he get here? As we discussed earlier, Goldstein’s legal troubles stemmed from his penchant for gambling and habit of ignoring the laws he otherwise earned a good living upholding. According to court records, his deception and manipulation of the system ran deep.
Assistant Attorney General Colin McDonald noted, “This sentence holds Thomas Goldstein accountable for cheating the tax system and lying to mortgage lenders. Mr. Goldstein concealed millions of dollars in income, disguised income with foreign bank accounts, and manipulated his law firm’s books—all to fund his gambling and lifestyle. He then repeatedly chose not to pay taxes owed.”
How tax issues can escalate
There are many reasons people step off the straight and narrow. For Goldstein, maybe the good times beckoned and so did gambling. For others, it might be a sinking business or personal hardship. Sometimes what begins as a small one-off act of noncompliance escalates to a full-fledged tax evasion.
If you are concerned that your tax situation may attract attention from the Internal Revenue Service (IRS), our resource guide, Will I Be Charged with Criminal Tax Fraud?, provides general information about the issues individuals and business owners may encounter.
According to prosecutors, Goldstein used multiple bank accounts, including offshore accounts, to ferry his gambling winnings and legal fees. According to prosecutors, his gambling debts were identified as legal expenses, income was underreported, taxes were not paid, and he filed false tax returns. Between 2016 and 2024, prosecutors said, Goldstein failed to pay his taxes on time. Authorities also alleged he misstated his assets and liabilities to mortgage lenders to obtain financing for a $2.6 million home in Washington, D.C.
What happens next?
Goldstein is now serving his prison sentence, but his case may not be over. His legal team recently filed an appeal of his mortgage fraud and tax evasion convictions, which may keep the wheels of justice in play for quite a bit longer. After all, Goldstein is a gambling man.
Worried about criminal tax allegations?
If you are concerned about your tax return or business records, we can help you understand what issues you may be facing and discuss your legal options. Our firm represents clients on issues involving tax fraud, tax evasion, compliance irregularities, and tax litigation. Contact Robert J. Fedor, LLC, at 440-250-9709. We have offices in Chicago and Cleveland and work with clients across the United States and abroad.
