CHEVY CHASE, MD — A Montgomery County attorney is facing federal charges after prosecutors said he used legal fees to pay off gambling debt and failed to report millions of dollars in winnings on his tax returns.
A federal grand jury this week returned a 22-count indictment against Thomas C. Goldstein of Chevy Chase, owner of Goldstein & Russell P.C., charging him with tax evasion, assisting in the preparation of false tax returns, failing to pay taxes, and making false statements to two separate mortgage lenders, U.S. Attorney Erek L. Barron announced Thursday.
According to the indictment, between 2016 and 2023, Goldstein was the sole owner of his business, a boutique law firm specializing in appellate litigation. Prosecutors said Goldstein was also a high-stakes poker player, frequently playing in games involving millions of dollars.
During that time, prosecutors said Goldstein took part in a scheme to avoid paying his taxes. According to court documents, Goldstein took various steps to carry out this scheme, including diverting legal fees and assets from his law firm to his personal bank account and using them to pay personal poker-related debts.
According to prosecutors, Goldstein falsely classified those payments as “legal fee” expenses on the firm’s books and records. Prosecutors said he also used firm assets to pay salaries and health insurance premiums for people with whom Goldstein had a personal relationship but who performed little or no work for his law firm.
According to court documents, Goldstein also failed to report or understated millions of dollars of gambling winnings on his tax returns. For several years, Goldstein also did not pay the taxes due on his returns, prosecutors said. Instead, he spent millions of dollars on personal expenses such as gambling debts, travel, vacation rentals, and luxury goods, according to court documents.
In 2021, prosecutors said Goldstein also submitted false mortgage applications to two separate lending companies to obtain financing to purchase a $2.6 million home in Washington, D.C.
On those mortgage applications — which required Goldstein to list all his liabilities and debts — prosecutors said Goldstein omitted millions of dollars of liabilities, including more than $14 million he owed at the time on two promissory notes, as well as taxes he owed to the IRS.
According to court documents, Goldstein’s false statements to one of the lenders allowed him to obtain a $1.98 million loan.
If convicted, Goldstein faces a maximum sentence of five years in prison for each of the tax evasion charges, three years for each count of assisting in the preparation of false tax returns, a maximum of one year on each of the five counts charging willful failure to pay taxes, and 30 years for each count of making false statements to mortgage lenders. He also faces a period of supervised release, monetary penalties and restitution.
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