A federal judge appointed by former President Barack Obama has issued a scathing ruling against a $1.8 billion fund linked to Donald Trump, recommending sanctions against the attorneys involved in the case.
US District Judge Kathleen Williams stated that the lawsuit, filed against the Internal Revenue Service (IRS) concerning leaked tax returns, was initiated for an "improper purpose." According to the ruling, the lawsuit appeared to be an attempt to legitimize a deal offering immunity to Trump's allies and to allocate billions in taxpayer money for claims lacking legal basis.
The settlement that would have created the fund was abandoned earlier this summer following significant backlash from lawmakers. The agreement, which concluded in May, was between Trump and the Department of Justice. It proposed the creation of a $1.776 billion fund intended to compensate Trump's political allies and protect him from future tax audits.
Judge Williams also ordered sanctions against the attorneys who handled the lawsuit, citing violations of Department of Justice policies and potential breaches of law. Trump's personal attorney, Alejandro Brito, was referred to the Florida Bar for possible disciplinary action. Daniel Z. Epstein, a former White House lawyer, has been barred from practicing before the Southern District of Florida for one year.
Copies of the ruling were also directed to the New York bar, where Acting Attorney General Todd Blanche is facing disciplinary proceedings. The judge further prohibited Trump, the Justice Department, and other parties from using the purported settlement as evidence in any future legal proceedings.
The initial lawsuit was filed in 2019 by Trump, his sons Donald Jr. and Eric Trump, and the Trump Organization against the Treasury and IRS after their tax returns were leaked. The suit was dropped in May, along with claims for damages related to the Mar-a-Lago raid and the Russian election interference probe, in exchange for the proposed creation of the "Anti-Weaponization Fund."
The now-defunct settlement would have granted the fund the authority to issue formal apologies and provide monetary relief. It was to be overseen by a five-member commission appointed by the Attorney General, with Trump holding the power to remove members. While Trump himself was barred from directly receiving funds, entities associated with him were not explicitly prohibited from filing claims.
A spokesperson for Trump's legal team stated that the IRS wrongly allowed a "rogue, politically-motivated employee" to leak confidential information and that Trump holds accountable those who wrong Americans. Williams's ruling suggests that Trump may no longer be immune from future IRS investigations. She was appointed to the federal bench in 2011 by President Obama.