A pivotal prosecution witness in the federal criminal case against prominent Supreme Court advocate Tom Goldstein saw his credibility sharply undermined under cross-examination, raising new questions about the strength of the government’s case and the handling of key evidence.

Bloomberg reports that at the center of the dispute is Walter Deyhle, a former accountant who prepared Goldstein’s tax returns and testified for the government regarding alleged underreporting of gambling winnings. Under questioning from the defense, Deyhle acknowledged that his earlier statements to investigators conflicted with documentary evidence, including a contemporaneous email from Goldstein describing significantly higher gambling income than Deyhle had initially conveyed. The defense emphasized that these discrepancies were material, particularly given the government’s reliance on Deyhle to establish intent and knowledge in its tax-related charges.

The cross-examination also exposed admitted errors in Deyhle’s tax preparation work, further eroding his reliability in the eyes of the jury. Defense counsel argued that these mistakes, combined with incomplete or inaccurate recollections, weakened the foundation of the prosecution’s narrative and cast doubt on whether Goldstein knowingly misled tax authorities.

Compounding matters, the defense accused prosecutors of failing to timely disclose information related to a meeting in which the incriminating email was first presented to Deyhle. The alleged disclosure lapse prompted a dispute over the government’s evidentiary obligations, with the court ordering additional briefing to determine whether any remedial action is warranted.

The proceedings additionally brought attention to testimony from a senior executive at Parabellum Capital, the litigation finance firm that previously provided financial assistance to Goldstein. The testimony offered rare insight into the nature of the funding arrangement, which included support to address tax liabilities and personal financial pressures. While not accused of wrongdoing, the funder’s involvement illustrated how litigation finance can intersect with personal financial distress in high-stakes legal matters.

Janus Henderson Group affiliates have suffered an early procedural setback in a closely watched litigation finance dispute that underscores the internal tensions that can arise within funder-backed investment structures and joint ventures.

Bloomberg Law reports that a Delaware Chancery Court judge has refused to dismiss claims brought by Calumet Capital Partners against several entities linked to Janus Henderson. The ruling allows the case to proceed into discovery, rejecting arguments that the complaint failed to state viable claims. Calumet alleges that the defendants engaged in a concerted effort to undermine a litigation finance joint venture in order to force a buyout of Calumet’s interests on unfavorable terms.

According to the complaint, the dispute centers on governance and control issues within a litigation finance vehicle that was designed to deploy capital into funded legal claims. Calumet contends that Janus Henderson affiliated entities systematically blocked proposed funding deals, interfered with relationships, and restricted the venture’s ability to operate as intended. These actions, Calumet claims, were aimed at depressing the value of its stake and pressuring it into an exit at a steep discount.

The defendants moved to dismiss the case, arguing that their actions were contractually permitted and that Calumet’s allegations were insufficient to support claims such as breach of contract and tortious interference. The court disagreed at this stage, finding that Calumet had plausibly alleged misconduct that warrants further factual development. While the ruling does not determine the merits of the case, it keeps alive serious allegations about how litigation finance partnerships are managed and unwound when commercial interests diverge.