A federal judge appointed under President Barack Obama delivered a sharply worded decision targeting what she described as Donald Trump’s $1.8 billion “slush fund,” while recommending sanctions against lawyers for the president.
U.S. District Judge Kathleen Williams said Monday that Trump’s lawsuit against the Internal Revenue Service over his leaked tax returns had been brought for an “improper purpose.”
In her ruling, Williams said the case appeared designed to enlist the court’s authority to validate an agreement that would provide immunity to Trump allies and reserve billions in taxpayer funds for claims she said lacked legal grounding.
The legal fight ended in May, when Trump settled after the Department of Justice agreed to establish a $1.776 billion fund intended to compensate his political supporters and protect him from future tax audits.
Following fierce criticism from lawmakers in Washington, Trump dropped the proposed fund earlier this summer.
Williams, 70, also called for sanctions against attorneys tied to the litigation, saying their conduct in the case ran afoul of Justice Department policies and may have violated the law.
The judge referred Trump’s personal lawyer, Alejandro Brito, to the Florida Bar for potential disciplinary review. She also blocked former White House attorney Daniel Z. Epstein from admission to practice in the Southern District of Florida for one year, or until the court decides otherwise.
In a separate step, Williams directed that copies of her ruling be sent to the New York bar, where Acting Attorney General Todd Blanche is already facing disciplinary proceedings.
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.
