Indicted SCOTUSblog founder Goldstein poses 'economic danger,' judge says in rejecting latest requests
A Maryland federal judge has ruled that SCOTUSblog co-founder Tom Goldstein isn’t entitled to see grand jury testimony in the tax fraud case against him and must continue to submit to monitoring of his electronic devices while he is on pretrial release. (Photo by Alex Brandon/The Associated Press)
SCOTUSblog co-founder Tom Goldstein isn’t entitled to see grand jury testimony in the tax fraud case against him and must continue to submit to monitoring of his electronic devices while he is on pretrial release, a federal judge has ruled.
U.S. District Judge Lydia Kay Griggsby of the District of Maryland denied Goldstein’s motions in a March 27 opinion.
Goldstein, a former high-stakes poker player and a U.S. Supreme Court litigator, has been accused in a Jan. 16 federal indictment of hiding millions of dollars in income and cryptocurrency transactions on tax returns. He was also accused of lying on mortgage loan applications.
Goldstein had sought to obtain grand jury testimony from an office manager in a court filing alleging that prosecutors “seriously misled the court” by characterizing his offer of compensation to the departing employee as a likely bribe attempt.
Another explanation for the compensation offer, Goldstein said, was that he wanted to retain the manager to assist his law firm in gathering materials responsive to government subpoenas.
Goldstein also argued that electronic monitoring should be lifted because of the possibility that attorney-client communications will be exposed.
Griggsby resolved the issues without considering disputed allegations that Goldstein tampered with the witness or that he concealed from the court two cryptocurrency wallets that are not hosted at any exchanges. The owners and users of such unhosted wallets are difficult to ascertain.
Griggsby said grand jury testimony is presumptively secret but did not provide further explanation for her decision, pointing to reasons that she stated at a March 25 hearing.
Turning to monitoring of Goldstein’s devices, Griggsby said the condition of pretrial release is needed because of his above-average ability to flee and the “economic danger” that he poses to the public.
Goldstein’s “significant international travel and contacts” with gamblers and other wealthy people in foreign countries could “make it easier for him to flee than the average person,” Griggsby said.
As for economic danger, Griggsby pointed to indictment allegations that he “owes millions of dollars to the federal government and private individuals, who would be harmed should the defendant flee.” Goldstein’s ability to engage in cryptocurrency transactions and to gamble online also pose a danger, she said.
Although pretrial services personnel monitoring Goldstein’s devices might see Goldstein’s communications with his lawyers, they would not be disclosed to the government, Griggsby added.
Hat tip to PokerNews, Law360 and Bloomberg Law, which covered Griggsby’s decision.
Write a letter to the editor, share a story tip or update, or report an error.
