Lawyer’s plea deal on allegations of tax evasion irritates former clients

Last Monday, the day income taxes were due, Susan and Lonny Goodman and Ilene and Lawrence Pondel filed documents as “interested parties” and “victims” in Goldberg’s criminal case, saying the plea bargain makes a mockery of justice.

Goldberg was indicted Sept. 19, 2012, on nine counts, including four of tax evasion from the years 2005-2008. Five other counts pertained to his hiding income and assets from the Internal Revenue Service. At that time, prosecutors were asking for forfeiture of $1.1 million in assets.

In March, he agreed to plead to tax evasion for the year 2008 and said he is willing to go to prison for 18 months. The agreement said the loss for that year ranged between $200,000 and $400,000. At sentencing, prosecutors can argue for restitution above $400,000.

Goldberg also agreed to surrender his law license for at least two years as part of the plea agreement.

The Goodmans, who have been among Goldberg’s most severe critics for the way he handled their bankruptcy case, called his a “sweetheart deal.”

Goldberg’s plea bargain is softer than the plea bargain of Las Vegas attorney Charles LoBello, who in January received two years for his guilty plea for hiding $900,000 of his income.

“Mr. Goldberg has no respect for the justice system, he has no respect for the law profession, he had no respect for his clients,” Susan Goodman wrote, asking how can he get off so easily.

Navarro sentences Goldberg on May 23 and has the option of accepting, rejecting or altering the plea bargain. The two couples are hoping that people who received shoddy representation from Goldberg pack the courtroom.

Both couples said Goldberg neglected their bankruptcy cases, creating problems rather than solving problems as promised.

“Randolph Goldberg will never replace the home we lost,” wrote Ilene Pondel. “He knew and didn’t care about the problems he created for us. He turned his back on us the minute his fee was paid.”

Late Friday, Goldberg’s attorney, David Chesnoff, asked that the couples’ filed documents be struck from the record because they are not “victims” in the tax case and have no standing. Their goal is only to “enflame the Court,” Chesnoff wrote.

He may be right, but these four aren’t the only ones unhappy about Goldberg’s bankruptcy practice.

Two bankruptcy judges previously recommended that Goldberg should be investigated for possible misconduct.

U.S. Bankruptcy Judge Bruce Markell suggested that Goldberg be investigated as far back as the spring of 2010. In 2009, Markell sanctioned Goldberg for failing “to meet the standards of a competent attorney.”

In December, U.S. Bankruptcy Judge Mike Nakagawa banned Goldberg from taking on new clients for six months and recommended that he be investigated by six different federal and state agencies.

The State Bar of Nevada received 10 complaints against Goldberg dating back as far as 2007, and has not made a recommendation yet to the Nevada Supreme Court because hearings haven’t finished, according to Assistant Bar Counsel Phil Pattee.

Goldberg went on inactive status after his plea agreement became public, so for now, the public is protected from his grind-’em-out practice.

Don’t assume that because he will have a criminal record as a tax cheat that Goldberg won’t be licensed again. It’s rare, but felons and tax cheats have been known to be relicensed as attorneys by the Nevada Supreme Court.

Despite the wrath of his former bankruptcy clients, smart money is on Judge Navarro accepting the plea bargain. However, she has the option to change the terms, which could create some suspense during sentencing.

Jane Ann Morrison’s column appears Monday, Thursday and Saturday. Email her at Jane@reviewjournal.com or call her at 702-383-0275.