A previously convicted Wall Street fraudster, once recognized as New York’s top tax evader about ten years ago, has been enjoying life in California. He runs a charity that has received accolades from Governor Gavin Newsom and is also selling erectile dysfunction medications—all while evading a tax liability that has surged to $59.1 million, according to recent reports.
Daniel Gordon, a former Merrill Lynch trader who admitted guilt in 2003 for swindling the bank out of $43 million through an elaborate wire fraud scheme, shares a luxurious 10,495-square-foot home near Palm Springs, valued over $5 million, with his wife, Kate, as indicated by state tax documents.
This expansive estate in Rancho Mirage—a wealthy desert community that has housed celebrities such as Frank Sinatra and Bill Gates—features amenities like a sunken tennis court, a three-hole putting green, and a resort-like pool complete with waterfalls and a swim-up bar, as reported by real estate sources.
In California, the 50-year-old Gordon has taken on the image of a philanthropist. He leads a prison reform organization known as Gordon Philanthropies, participates in television interviews, and shares joyful moments on social media, posing at various charity events with LAPD and the California Department of Corrections.
In November 2024, Gordon received an enthusiastic letter from Governor Newsom, where Newsom expressed gratitude and signed off with a handwritten “Thank you!” This letter is prominently showcased on the charity’s Facebook profile.
However, both Gordon and Newsom’s office did not respond when approached for comments. Similarly, California prison officials provided no answers to inquiries about Gordon’s criminal history or his massive tax bill, referring instead to regulations that allow them to accept private donations.
This situation unfolds after New York tax authorities highlighted Gordon in 2016 as the state’s top tax evader, revealing he had outstanding warrants totaling $25.1 million. They vowed to locate him and ensure he pays up.
Years later, two active tax warrants from Albany County against Gordon add up to an eye-watering $59,141,763.16, directly linked to his scheme at Merrill Lynch, where as a 24-year-old Yale graduate, he tricked his employer into sending $43 million to an offshore shell company masquerading as an insurance deal.
When ordered to return the misappropriated money in 2003, he found that both the IRS and Albany sought their share, as illegally obtained funds are subject to taxation. The amount owed has since swelled due to interest and penalties.
During his 2013 bankruptcy proceedings, Gordon candidly stated under oath that he had evaded over $34 million in taxes and learned from the IRS that he was liable for taxes on his stolen funds, despite repaying the amount. “According to our laws, you owe us taxes… regardless of the fact that it was repaid,” the IRS told him.
His criminal case didn’t clear him of his financial obligations, and when tax agencies pursued further action, Gordon filed for bankruptcy.
In a harsh ruling in 2015, US Bankruptcy Judge Robert E. Gerber denied Gordon’s attempts to discharge his personal debts under a Chapter 7 filing. The judge concluded Gordon had deceitfully concealed $3.1 million in assets and provided false testimony, suggesting his excuses “insulted the intelligence of the court.”
It was during the trial that evidence surfaced indicating Gordon had transferred $2 million to a non-existent Nevada entity void of personnel or records. Notably, his lawyer confirmed that he had charged former New York Knicks player Eddy Curry an astonishing 89.79% interest on a loan, which inflated a $570,000 debt to $2 million in just over a year.
Gordon claimed he had a mere $3,147 to his name yet was living in a $19,000 monthly apartment on the Upper East Side and had forked over $140,000 for a summer rental in the Hamptons, cleverly concealing the details behind a corporate entity.
Despite intense media scrutiny surrounding his plight, state agencies have yet to undertake any standard procedures to recoup Gordon’s significant tax debt. This is particularly puzzling given that they were alerted by a whistleblower over two years ago.
Documents acquired through leaks show that state investigators took no action even after receiving a comprehensive outline of over $26 million in Gordon’s purported assets.
A whistleblower, a Texas entrepreneur opting to remain anonymous due to threats against him, submitted multiple tips to the Department of Taxation and Finance’s internal department in March 2024. The informant expressed a strong desire for New York to reclaim lost revenue.
The whistleblower identified “$4.1 million in non-exempt California real estate in addition to $22 million in shares of public companies,” as detailed in one of the emails.
This individual even directed state investigators to a local address—at a stock transfer agency in Lower Manhattan—linked to a corporate entity associated with Gordon.
In an email response, a New York tax investigator promised to relay the information to the appropriate department.
Yet, more than two years on, records indicate that New York has not filed a single lien against the Rancho Mirage property. With tax warrants expiring after two decades, Albany’s opportunity to collect is dwindling.
A spokesperson for the New York Department of Taxation and Finance declined to comment on the steps taken to recover the $59.1 million liability, citing state tax confidentiality laws.
Because of a bureaucratic oversight, individuals can be removed from the “Top 100” tax offenders list if no new warrant is filed within a year. Other reasons for removal include a successful challenge, agreements made, demise, or declaring bankruptcy.
Tax expert Edward Zelinsky noted that locating Gordon’s assets in California should be a straightforward task for New York’s legal teams. “This should definitely be routine for the attorney general, especially when significant sums are involved,” he remarked.
However, a spokesperson for New York Attorney General Letitia James asserted that the office requires a formal referral to take action.
“The primary responsibility for outstanding tax debts lies with the Department of Taxation and Finance unless they engage the Attorney General’s Office,” the spokesperson explained.
The Tax Department stated it does not forward cases to the AG’s office.
Tax attorney Timothy Noonan expressed that it’s rare for high-profile cases like Gordon’s to go unnoticed. “I would expect someone in that situation to be a priority target,” he said.
In instances where delinquent taxpayers have left the state, tax authorities can instruct the Attorney General to pursue collection efforts elsewhere. Specifically, they can “domesticate the warrant” in California, allowing them to transform a New York tax debt into a local court judgment swiftly, potentially freezing Gordon’s finances and seizing his luxury home.
The rules do not bar collaboration between these offices, noted another tax expert. “Typically, it’s easier to pursue low-risk debts than take on multimillion-dollar claims against well-defended individuals,” he added.
Despite the potential for wealthy debtors to employ sophisticated strategies to shield themselves from collection efforts, tax specialist Duncan Levin mentioned that an LLC serves merely as a legal facade. He explained, “New York can’t just seize company assets to clear an owner’s tax bill unless the company functions effectively as the owner’s personal fund.”
Gordon’s California property, however, could present a more accessible target since it’s registered in his name, notwithstanding the need for a legal order to satisfy any claims.
“A $5 million property does not equate to a $5 million cash payment,” Levin noted. “The state’s role is to convert a tax warrant into a collection process.”
In the meantime, Gordon is active in California. Corporate records indicate that his charity, along with his penny stock venture Polomar Health Services and his GLD Partners investment group, all operate from the same office suite in Los Angeles.
SEC filings reveal he holds a 49% voting stake in Polomar, which has recently spent over $193,000 to acquire “Wafesil,” a dissolving sildenafil erectile enhancement medication, sourced directly from another of his companies.
Additionally, Polomar is involved in promoting an “inhalable sildenafil” system—a sort of rescue inhaler infused with generic Viagra, according to disclosures.
