ABA Journal, Did Alleged Sham Hiring by SCOTUSblog Founder Tom Goldstein Constitute Tax Evasion? Judge Will Decide:

U.S. District Judge Lydia Kay Griggsby of the District of Maryland didn’t immediately rule on Goldstein’s motion to dismiss tax evasion charges related to four women he hired at his law firm alleged to have done little or no work. The government alleges that payments to the women, with whom Goldstein pursued romantic relationships, should have been treated as distributions to Goldstein for which he owed taxes.

Bloomberg Law and Law360 covered the Nov. 6 hearing in which Griggsby ruled from the bench. She chronicled her decisions in an order issued the same day. …

Regarding the allegedly sham employees, Griggsby indicated that she is inclined to rule for Goldstein but said she would wait for additional briefing from the government before deciding, Bloomberg Law reports.

Goldstein said three of the women performed some work for his firm, and the fourth went on medical leave soon after her hiring. Griggsby indicated that she had some concerns that the tax evasion statute as applied to the employment arrangement was impermissibly vague.

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