Criminal Justice
SCOTUSblog founder Tom Goldstein asks judge to toss tax charges, suppress statement about $968K in cash
Retired U.S. Supreme Court litigator and SCOTUSblog co-founder Tom Goldstein has filed seven motions attacking the government’s tax fraud case against him, arguing that some charges were filed too late or based on erroneous legal theories. (Photo by Alex Brandon/The Associated Press)
Retired U.S. Supreme Court litigator and SCOTUSblog co-founder Tom Goldstein has filed seven motions attacking the government’s tax fraud case against him, arguing that some charges were filed too late or based on erroneous legal theories.
Law360 called the new filings by Goldstein’s lawyers his defense’s “biggest and boldest broadside against the DOJ’s legal views and prosecutorial conduct.” Besides attacking the basis for the charges, the court filings also claim that the U.S. Department of Justice questioned witnesses about Goldstein’s “sexual habits and preferences,” a tactic intended to prejudice the grand jury.
Goldstein, a high-stakes poker player, also seeks to suppress an alleged statement to an airport customs officer that $968,000 in cash that he was carrying was “gambling winnings from Macao.”
He also contends that the government failed to take account of gambling losses that should be subtracted from gambling winnings.
Goldstein is represented by lawyers at Munger, Tolles & Olson, according to Law360 and Reuters.
He was charged in a Jan. 16 indictment that alleges tax evasion, aiding and assisting the preparation of false tax returns, willful failure to pay taxes, and making false statements on mortgage loan applications.
The motions contend that:
• The government should be compelled to disclose materials showing that it improperly instructed the grand jury and that some witnesses testimony was favorable to the defense. The government should also disclose transcripts showing that prosecutors “asked numerous witnesses about irrelevant, intimate information” that would prejudice the grand jury, including questions about Goldstein’s “sexual habits and preferences.” (Motion for disclosure of Brady and grand jury materials)
• Goldstein’s alleged statements to U.S. Customs and Border Protection officers about the nearly $1 million in cash that he was bringing into the country should be suppressed because Goldstein was not advised of his Miranda rights during questioning. (Motion to suppress statements)
• The government is charging Goldstein with willful failure to file taxes for tax years 2016 through 2021, even though he ultimately paid the outstanding taxes with penalties and interest. “To the defense’s knowledge, the government has never before charged a taxpayer with a crime under these circumstances,” the motion says. “Generally, this offense is charged against taxpayers who fail to file returns.” (Motion to dismiss counts 15 to 19)
• The government claims that Goldstein’s law firm paid four employees for little or no work that should have counted as personal distributions to Goldstein. “Either this conduct does not fall within the ambit of the tax evasion statute, or if it does, then the statute is unconstitutionally vague as applied,” the motion says. (Motion to dismiss allegations about employees)
• The government should provide Goldstein with details about his alleged gambling losses, as well as wins. It also should provide information about the salary amounts paid to little-working employees that were incorrectly deducted as business expenses. (Motion for bill of particulars)
• Tax evasion charges for tax years 2016, 2017, 2018 and 2021 fail to allege affirmative acts of tax evasion. Prosecutors allege that Goldstein’s firm improperly characterized as business expenses “a handful” of payments that should have been counted as personal distributions. “But the indictment does not allege that Mr. Goldstein himself mischaracterized the transactions, or that he took any step to encourage someone else to do so,” the motion says. (Motion to dismiss allegations for failure to allege affirmative act)
• Counts in the indictment related to alleged tax fraud in 2016 are barred by the statute of limitations. (Motion to dismiss counts 1, 5, 6 and 15)
See also:
SCOTUSblog founder Tom Goldstein wins pretrial release after denying moving millions in crypto
Indicted SCOTUSblog founder Tom Goldstein can’t switch collateral, magistrate judge rules
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