Goldstein Trial: Law Firm Profited After Chasing Poker Repayment

• Law firm chief describes $500K stake backing Goldstein’s poker.
• Prosecutors say Goldstein hid millions in winnings, dodged taxes.
  
• Defense casts him as brilliant but disorganized, not intentionally fraudulent.

A federal jury in Maryland heard Wednesday from the head of a law firm that invested $500,000 in Tom Goldstein’s high-stakes poker play.

Goldstein is a longtime Washington lawyer who argued more than 40 cases before the US Supreme Court. He also moonlighted as a poker player involved in some of the highest-stakes heads-up games in the world. He is currently on trial accused of “willfully” evading millions of dollars in taxes on his winnings and engaging in financial misconduct related to his gambling activities.

Goldstein has pleaded not guilty, saying his handling of financial matters was done in good faith and based on advice from accountants or office managers.

Chasing Payment

Paul Napoli, co-founder and partner at New York-based Napoli Shkolnik, testified that his firm put up the money because it seemed like “a fun, interesting investment,” according to Reuters, though he acknowledged the firm’s chief financial officer thought the idea was “crazy.”

Another prominent lawyer, Darren Robbins of Robbins Geller Rudman & Dowd, told jurors that Goldstein also offered him the chance to invest, which he declined.

Prosecutors hope the testimony will show how Goldstein’s gambling intersected with his professional relationships and give jurors insight into his appetite for risk. But it could also aid the defense, illustrating that Goldstein was open about his gambling — and that while he had to be chased for repayment, he ultimately made good.

The defense is expected to portray Goldstein as a brilliant but disorganized man who played poker at an elite level but struggled to keep his finances and paperwork in order.

High-Stakes Streak

In 2016, Goldstein won $26.4 million in a series of heads-up matches against a Beverly Hills businessman. While the opponent was not named in the indictment, Goldstein disclosed last month that it was Alec Gores, the billionaire founder of Gores Group.

That same year, he notched up further major wins in the Philippines, taking $13.8 million from a gambler known as “Tango” and $9.96 million from a player referred to as “The Chairman.” Altogether, the games generated roughly $50 million in gross winnings, though Goldstein had sold 75% of his stake.

At the time of his indictment, Goldstein was also involved in a series of matches against a Southern businessman whom he has declined to identify. By his own account, he was winning millions.