A distinguished Maryland lawyer who allegedly gained 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 fees starting from tax evasion to creating false statements to mortgage lenders.
The small print throughout the 22-count indictment towards Thomas C. Goldstein, the 54-year-old lawyer, proprietor of a boutique legislation 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 accordance with the 50-page indictment, in 2016, Goldstein:
Gained about $50 million enjoying heads-up poker towards three gamers within the fall of 2016, beginning with “International Gambler-1” in Asia. To arrange for his September matches, Goldstein consulted with two unnamed skilled poker gamers who coached and had a chunk of the lawyer. They even used laptop 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 ways he had devised, based mostly on International Gambler-1 ‘s enjoying patterns, GOLDSTEIN’s previous errors when enjoying him, info gathered from different poker gamers, and laptop simulated apply,” reads the indictment.
The apply and training paid off to the tune of $13.8 million.
Goldstein then performed a couple 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 cost on document.
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 fee towards the three “targets” of $660,000 per hour over 77 hours by 11 classes. That provides as much as the $50,900,000. Goldstein solely reported $13,687,050 in winnings for 2016, in keeping with the DOJ.
However Goldstein’s luck turned in late 2016 and into 2017, the place, in keeping with the indictment, he misplaced almost $10 million to “California Businessman-3,” whose tens of millions got here from investing in actual property.
After that, in keeping with 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 have been as a result of legislation agency to his private checking account, after which utilizing them to pay private poker-related money owed; utilizing the legislation agency’s belongings to fulfill his private poker money owed and inflicting these funds to be falsely categorised as “authorized payment” bills on the agency’s books and data; and utilizing agency belongings to pay salaries and medical insurance premiums for individuals with whom Goldstein had a private relationship however who carried out little or no work for the legislation agency and didn’t qualify for its medical 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 have been due on his returns, whereas concurrently spending tens of millions of {dollars} on private bills similar to playing money owed, journey, trip leases and luxurious items.”
His poker debt reached $14 million by 2021, and he was dealing with liens on his properties for failing to pay his taxes. That very same yr, “Goldstein additionally allegedly submitted false mortgage purposes to 2 separate mortgage lending firms, looking for financing to buy a $2.6 million dwelling in Washington, D.C.
On these mortgage purposes — which required Goldstein to record 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,” in keeping with the indictment.
The poker-playing lawyer
Goldstein just isn’t 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 gained his manner into the WSOP Foremost 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 courtroom room. As outlined by an article in The Atlantic, they have been buddies who would do things like wager $300,000 on whose muscle automobile was quicker — Goldstein’s 2011 Ferrari 458 or Bilzerian’s 1965 Shelby Cobra (Bilzerian gained, which additionally required Goldstein to smoke marijuana for the primary time).
Goldstein additionally seems in Bilzerian’s guide “Setup,” the place they fly to Montenegro collectively to celebration on a yacht with poker-playing billionaire Invoice Perkins and so many ladies that they needed to hire an even bigger boat.
He additionally defended Paul Phua, the Malaysian businessman who based Triton Poker and its sequence in 2014. Phua grew to become a member of the uber-rich by working 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 decide in Nevada after being accused of taking bets from a $40,000-a-night villa at Caesar’s Palace.
In accordance with a serious ESPN article on Phua: “Phua, as well as (to lawyer David Chesnoff, who represented Phil Ivey in a divorce), employed one in all Tom Dwan’s poker acquaintances, Washington lawyer Tom Goldstein, who has argued 36 circumstances earlier than the Supreme Court docket and teaches legislation at Harvard.”
They obtained 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 cherished 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 individuals come. He wore no jewellery, no loud garments, no large watch, and no large 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 – desirous to get a chunk of this ‘loopy maniac.’ In case 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 could 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 rely of helping within the preparation of false tax returns; a most penalty of 1 yr in jail for every of rely of willful failure to pay taxes; and a most penalty of 30 years in jail for every rely 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 distinguished lawyer with an impeccable popularity. We’re deeply disenchanted that the federal government introduced these fees in a rush to judgment with out understanding the entire necessary details. Our shopper intends to vigorously contest these fees, and we count on he can be exonerated at trial.”
