Thomas Goldstein, a former US Supreme Court attorney with a stellar professional track record, now faces federal charges of deliberately underreporting millions of dollars in poker winnings. The government claims that his personal activities at high-stakes gambling tables affected his professional conduct in ways that crossed legal lines.
Goldstein Insists His Mistakes Were Not Intentional
In a Thursday hearing, Goldstein took the witness stand to defend himself. He acknowledged some mistakes but was adamant that his actions were not criminal. Goldstein admitted that he should have paid closer attention to his tax returns and to the finances of his former firm, Goldstein & Russell. He explained that all the mistakes occurred because he had trusted his advisors too much, not because he had planned to defraud the IRS.
“That’s my responsibility. I may end up continuing to pay for this for a long time. It’s just very different from whether I committed a crime.”
Thomas Goldstein
Prosecutors instead paint a damning picture. They allege Goldstein failed to report substantial gambling income over several years while maintaining a lifestyle that included luxury travel, high-end vehicles, and lavish residences. According to the indictment, investors provided millions of dollars to fund his poker games in exchange for a share of profits, creating streams of money that were allegedly not properly disclosed.
According to a recent Reuters report, the case hinges on whether the discrepancies were deliberate. Prosecutors argue that financial records show how funds moved through Goldstein’s firm in a manner that obscured their origin. They also allege he made misleading statements on mortgage applications and treated certain poker proceeds as loans, rather than taxable winnings.
Goldstein does not deny that he played in elite private games where swings could reach seven figures in a single night. He has previously spoken publicly about losing as much as $15 million at the tables. What he disputes is the suggestion that he knowingly hid income. He argued that the bookkeeping around staking arrangements and shared profits was complex and, at times, confusing.
Prosecutor Sean Beaty confronted Goldstein with evidence of lavish spending during years when, the government says, he owed millions in taxes. Some of the highlights include a $225,000 Bentley, luxury rentals in Miami, and expensive nights out. Beaty suggested that such spending undermines the claim of innocent oversight.
Goldstein conceded that his priorities were flawed and that some purchases were embarrassing in hindsight. While prosecutors have questioned how a lawyer with such a storied reputation in appellate law could make such a glaring mistake, he insisted thatpoor judgment is not the same as fraud. Deliberations on the case could begin as soon as next week.
