An Obama-appointed federal judge issued a scathing ruling against Donald Trump’s $1.8 billion ‘slush fund,’ recommending sanctions for the president’s attorneys.
US District Judge Kathleen Williams said Monday that the President’s lawsuit against the Internal Revenue Service regarding his leaked tax returns was filed for an ‘improper purpose.’
The judge wrote that the lawsuit appeared to be an effort to use the court to legitimize a deal granting immunity to the president’s allies and to set aside billions in taxpayer money for claims with no basis in law.
The lawsuit concluded in May, when Trump settled the case after the Department of Justice agreed to create a $1.776 billion fund meant to compensate Trump’s political allies and to shield him from future tax audits.
After facing intense backlash from lawmakers in Washington, Trump abandoned the slush fund earlier this summer.
Judge Williams, 70, also ordered sanctions for the attorney involved in the lawsuit, arguing their handling of this case violated DOJ policies and potentially the law.
Williams referred Trump’s personal attorney Alejandro Brito to the Florida Bar for possible disciplinary action. She also barred Trump’s former White House lawyer, Daniel Z. Epstein, from being admitted to practice before the Southern District of Florida for one year or until the court orders otherwise.
Separately, Williams ordered copies of her ruling sent to the New York bar, where Acting Attorney General Todd Blanche faces disciplinary proceedings against him.
After facing intense backlash from lawmakers in Washington, Trump abandoned the slush fund earlier this summer
US District Judge Kathleen Williams said Monday that the President’s lawsuit against the Internal Revenue Service regarding his leaked tax returns was filed for an ‘improper purpose’
Judge Williams, 70, was appointed by then-President Barack Obama in 2011
The judge also barred Trump, the Justice Department and all other parties in the case from citing the purported settlement as evidence of a settlement in any future judicial proceedings.
The President, his sons Don Jr and Eric, and the Trump Organization initially filed suit against the Treasury and IRS in the Southern District of Florida federal court after the leak of their tax returns in 2019.
In May, they agreed to drop their suit, as well as two claims, including for damages resulting from the raid on Mar-a-Lago in 2022 and the Russian election interference probe, in exchange for the government’s creation of the ‘Anti-Weaponization Fund.’
The now-defunct settlement granted Trump’s fund with the power to issue formal apologies and monetary relief owed to claimants.
It was intended to be governed by a five-member commission appointed by the Attorney General, with Trump given the power to remove any member.
While Trump was barred from directly receiving payments from the fund, entities associated with him were not explicitly prohibited from filing additional ones.
The settlement also had a provision that protected the president, his family and all his business entities from future tax audits.
The judge ordered copies of her ruling sent to the New York bar, where Acting Attorney General Todd Blanche faces disciplinary proceedings against him
The President, his sons Don Jr and Eric, and the Trump Organization initially filed suit against the Treasury and IRS in the Southern District of Florida federal court after the leak of their tax returns in 2019
Williams’s ruling on Monday suggests that Trump may no longer have immunity from future IRS investigations.
In response, a spokesperson for Trump’s legal team issued the following statement: ‘The IRS wrongly allowed a rogue, politically-motivated employee to leak private and confidential information about President Trump, his family, and the Trump Organization.’
‘President Trump continues to hold those who wrong America and Americans accountable,’ the spokesperson added.
