A outstanding Maryland lawyer who allegedly received and misplaced tens of tens of millions of {dollars} enjoying excessive stakes poker has been indicted by a federal grand jury on a handful of expenses starting from tax evasion to creating false statements to mortgage lenders.
The small print throughout the 22-count indictment in opposition to Thomas C. Goldstein, the 54-year-old lawyer, proprietor of a boutique regulation agency specializing in appellate litigation earlier than the U.S. Supreme Court docket, Harvard professor and founding father of the favored SCOTUSblog, are straight out of a film.
$50 million from three gamers
In line with the 50-page indictment, in 2016, Goldstein:
Gained about $50 million enjoying heads-up poker in opposition to three gamers within the fall of 2016, beginning with “International Gambler-1” in Asia. To organize for his September matches, Goldstein consulted with two unnamed skilled poker gamers who coached and had a chunk of the lawyer. They even used pc simulation to get Goldstein prepared for battle.
“As a part of his preparation for the heads-up match with International Gambler-I, GOLDSTEIN authored and mentioned with Skilled Gambler-I and Skilled Gambler-2 a 24-page memorandum detailing the technique and techniques he had devised, primarily based on International Gambler-1 ‘s enjoying patterns, GOLDSTEIN’s previous errors when enjoying him, info gathered from different poker gamers, and pc simulated follow,” reads the indictment.
The follow and training paid off to the tune of $13.8 million.
Goldstein then performed a number of heads-up matches with “California Businessman-2” in November and December, successful $26,435,000, which was transferred to Goldstein the identical months. The businessman who misplaced that chunk additionally filed a Type 1099 with the IRS, which put the fee on report.
On a roll, Goldstein returned to Asia to play “International Gambler-2,” who misplaced $8.8 million to the litigator. Investigators know this as a result of Goldstein reported his outcomes to his skilled poker enjoying academics, who had a 2% and 5% piece of him every. They obtained their funds ($178,000 and $403,000) on Dec. 23, 2016, through wire switch.
He additionally reported to “Skilled Gambler-I” and “Skilled Gambler-2” the win charge in opposition to the three “targets” of $660,000 per hour over 77 hours by 11 periods. That provides as much as the $50,900,000. Goldstein solely reported $13,687,050 in winnings for 2016, based on the DOJ.
However Goldstein’s luck turned in late 2016 and into 2017, the place, based on the indictment, he misplaced almost $10 million to “California Businessman-3,” whose tens of millions got here from investing in actual property.
After that, based on a press launch from the U.S. Division of Justice:
“Goldstein allegedly engaged in a scheme to evade his taxes. Goldstein allegedly took numerous steps to hold out his scheme together with diverting authorized charges that had been as a result of regulation agency to his private checking account, after which utilizing them to pay private poker-related money owed; utilizing the regulation agency’s belongings to fulfill his private poker money owed and inflicting these funds to be falsely labeled as “authorized payment” bills on the agency’s books and data; and utilizing agency belongings to pay salaries and medical health insurance premiums for folks with whom Goldstein had a private relationship however who carried out little or no work for the regulation agency and didn’t qualify for its medical health insurance.
Goldstein additionally allegedly didn’t report, or falsely understated, tens of millions of {dollars} of playing winnings on his tax returns. As well as, for 2016 by 2021, besides 2018, Goldstein allegedly didn’t pay the taxes he self-reported had been due on his returns, whereas concurrently spending tens of millions of {dollars} on private bills corresponding to playing money owed, journey, trip leases and luxurious items.”
His poker debt reached $14 million by 2021, and he was going through liens on his properties for failing to pay his taxes. That very same 12 months, “Goldstein additionally allegedly submitted false mortgage purposes to 2 separate mortgage lending corporations, in search of financing to buy a $2.6 million house in Washington, D.C.
On these mortgage purposes — which required Goldstein to listing all his liabilities and money owed — Goldstein allegedly omitted tens of millions of {dollars} of liabilities, together with over $14 million he owed on the time on two promissory notes, in addition to taxes he owed to the IRS. Goldstein’s false statements to one of many mortgage lenders allegedly resulted in his acquiring a $1.98 million mortgage,” based on the indictment.
The poker-playing lawyer
Goldstein is just not an unknown participant or persona on the earth of excessive stakes poker and the individuals who populate it.
Again in 2008, the American Bar Affiliation referred to as Goldstein a “formidable” participant after he received his approach into the WSOP Important Occasion and had a $100,000 evening enjoying money on the Bellagio. Their web site additionally famous that he represented Dan Bilzerian after a porn-star sued him for throwing her off a roof right into a pool, which resulted in a damaged foot. In that article, he’s referred to as a “poker-playing lawyer.”
However his relationship with Bilzerian goes past the court docket room. As outlined by an article in The Atlantic, they had been buddies who would do things like guess $300,000 on whose muscle automotive was sooner — Goldstein’s 2011 Ferrari 458 or Bilzerian’s 1965 Shelby Cobra (Bilzerian received, which additionally required Goldstein to smoke marijuana for the primary time).
Goldstein additionally seems in Bilzerian’s ebook “Setup,” the place they fly to Montenegro collectively to occasion on a yacht with poker-playing billionaire Invoice Perkins and so many ladies that they needed to lease a much bigger boat.
He additionally defended Paul Phua, the Malaysian businessman who based Triton Poker and its collection in 2014. Phua grew to become a member of the uber-rich by operating a web based sports activities betting website referred to as IBCBet. He additionally labored with casinos in Macau bringing in VIP high-rollers –together with poker gamers — to gamble, which earned him a chunk of their play.
He discovered himself in entrance of a choose in Nevada after being accused of taking bets from a $40,000-a-night villa at Caesar’s Palace.
In line with a serious ESPN article on Phua: “Phua, as well as (to lawyer David Chesnoff, who represented Phil Ivey in a divorce), employed certainly one of Tom Dwan’s poker acquaintances, Washington lawyer Tom Goldstein, who has argued 36 instances earlier than the Supreme Court docket and teaches regulation at Harvard.”
They acquired Phua off.
There’s additionally a two-plus-two thread titled Craziest Poker Recreation of My Life, which paints Goldstein as a honest and well mannered poker maniac who liked to play palms with out them.
“And, regardless of having the guts and braveness of a warrior, Tom is as good and mild-mannered as folks come. He wore no jewellery, no loud garments, no huge watch, and no huge ego. For 18 hours, he was affable, partaking, modest, and by no means lied or confirmed any irritability regardless of each participant within the recreation – and within the poker site – eager to get a chunk of this ‘loopy maniac.’ In the event you needed to choose the king of insane poker maniacs of all gamers in all video games within the Bellagio poker site, by look solely, Tom is likely to be your final choose,” wrote 88Orange.
If convicted, Goldstein faces a most penalty of 5 years in jail for every tax evasion cost; a most penalty of three years in jail for every depend of aiding within the preparation of false tax returns; a most penalty of 1 12 months in jail for every of depend of willful failure to pay taxes; and a most penalty of 30 years in jail for every depend of creating false statements to mortgage lenders. He additionally faces a interval of supervised launch, fines and restitution.
Lawyer, authorized podcaster, and author David Lat reached out to Goldstein for a remark, and was despatched this by a PR agency representing Goldstein:
“Mr. Goldstein is a outstanding lawyer with an impeccable status. We’re deeply disillusioned that the federal government introduced these expenses in a rush to judgment with out understanding all the necessary info. Our consumer intends to vigorously contest these expenses, and we count on he will probably be exonerated at trial.”
