A federal jury in Greenbelt, Maryland has convicted prominent appellate attorney Thomas C. Goldstein of tax evasion and mortgage fraud, according to the U.S. Department of Justice.
Goldstein — who argued more than 40 cases before the U.S. Supreme Court and co-founded the legal website SCOTUSblog — was found guilty following a trial in the U.S. District Court for the District of Maryland. Prosecutors alleged he concealed millions of dollars in income and liabilities over a multi-year period.
The case is being prosecuted by the Justice Department’s Criminal Division Tax Section and the U.S. Attorney’s Office for the District of Maryland, with the IRS Criminal Investigation division and the FBI investigating.
What Prosecutors Said the Jury Found
According to the DOJ, Goldstein was the sole owner of Goldstein & Russell, P.C., a boutique appellate litigation firm. Prosecutors also described him as a high-stakes poker player who participated in games involving tens of millions of dollars.
The DOJ alleged that between 2016 and 2023 Goldstein stopped paying taxes on time and engaged in a scheme to evade taxes for 2016. The department said the scheme involved:
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concealing millions of dollars in poker wins and losses
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diverting legal fees payable to his firm into personal accounts
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directing payments to creditors to satisfy poker-related debts
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causing personal payments to be recorded as business expenses
Prosecutors said these actions resulted in underreported income and unpaid tax liabilities while Goldstein spent millions on personal expenses including poker, travel and luxury goods.
Mortgage Applications and Undisclosed Liabilities
The DOJ further alleged that in 2021 Goldstein submitted false mortgage applications to two lenders while seeking financing for a $2.6 million home in Washington, D.C.
According to prosecutors, the applications required disclosure of all liabilities and debts, but Goldstein omitted millions of dollars in obligations — including more than $14 million owed on two promissory notes and taxes owed to the IRS.
The DOJ said one lender issued a $1.98 million loan based on the false statements.
Counts of Conviction and Potential Penalties
The jury convicted Goldstein of:
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Tax evasion
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Assisting in the preparation of false tax returns
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Willful failure to timely pay taxes
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Making false statements to mortgage lenders
According to the DOJ, he faces maximum statutory penalties of:
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5 years for tax evasion
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3 years for each count of assisting false tax returns
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1 year for each count of willful failure to pay taxes
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30 years for each count of making false statements to mortgage lenders
Any sentence will be determined by a federal district court judge after consideration of the U.S. Sentencing Guidelines and other statutory factors. The DOJ said a sentencing date has not yet been set.
Why This Matters for Law Firms and Professional Advisers
While the case concerns an individual defendant, the DOJ’s allegations highlight several risk areas that law firms and professional services businesses routinely monitor.
First, the case underscores the importance of strict controls around the handling of client fees and firm revenue. Prosecutors alleged that firm income was diverted to personal accounts — a type of conduct that can quickly trigger tax and fraud exposure if governance is weak.
Second, the DOJ’s claims regarding the classification of personal payments as business expenses illustrate how accounting treatment can become central evidence in tax prosecutions.
Third, the mortgage component serves as a reminder that lenders and investigators may compare borrower disclosures against other financial records over time, particularly where large liabilities are involved.
For firms advising high-earning professionals, the case reinforces the need for clear separation between personal financial activity and firm operations, as well as careful oversight of tax reporting and loan disclosures.
What Happens Next
The case now moves to the sentencing phase in the U.S. District Court for the District of Maryland. The court will determine any custodial sentence after applying the federal sentencing framework. No sentencing date has been announced.
