Washington — On Monday, a federal judge imposed penalties on lawyers representing President Trump in a lawsuit against the IRS. The judge criticized the Justice Department for its handling of the case, stating that the lawsuit was brought for an “improper purpose.”
In a comprehensive 56-page ruling, U.S. District Judge Kathleen Williams referred one of Trump’s lawyers, Alejandro Brito, to the Florida Bar for potential disciplinary action. She also restricted lawyer Daniel Epstein from practicing in the Southern District of Florida.
Judge Williams prohibited the Justice Department, IRS, and Trump from using provisions of a settlement reached as evidence in court or administrative proceedings. According to Williams, the case was filed to gain judicial endorsement for a settlement lacking legal or factual basis.
“There was never adverseness between the Parties,” Williams wrote. “There was never a case or controversy, nor a question as to who would prevail.”
The judge forwarded her order to the State Bar of New York and the D.C. Bar, where Acting Attorney General Todd Blanche and Associate Attorney General Stanley Woodward have memberships. Both Blanche and Woodward had signed settlement documents.
Brito and Epstein did not comment on the matter immediately. Williams’ decision responded to concerns from a group of 35 former judges about the settlement in May, concluding the $10 billion lawsuit against the IRS concerning leaked tax returns by a government contractor.
The settlement initially proposed a $1.776 billion “anti-weaponization” fund to provide payouts to those claiming government weaponization against them. Congress strongly opposed this, and the Justice Department announced it would not proceed with the program.
A second provision prevents the IRS from pursuing tax claims against Trump and his family or their companies. Former judges petitioned Williams to reopen the case, labeling the settlement a “collusion” and “fraud on the court.”
Williams evaluated whether jurisdiction existed as Trump filed against a federal agency he controlled. She ruled no case or controversy existed, writing that Trump’s claims were pursued once he assumed the presidency again and appointed his former lawyer to a top DOJ position.
“There was never adverseness,” Williams stated, highlighting negotiations conducted by former and current Trump lawyers to reach a settlement.
Judge Williams condemned the Justice Department for its management of the case, accusing them of neglecting their duty to defend U.S. interests. She stated that the settlement ignored DOJ policies and pursued unauthorized goals, suggesting the lawsuit sought court legitimacy to confer immunity and allocate taxpayers’ money unjustly.
She criticized Trump’s portrayal of the case as ordinary, emphasizing the public servants involved and their obligation to uphold the law and protect public interests.
“The issue is whether they manipulated the judicial process,” Williams declared. “This is not ‘ordinary.'”
Williams criticized the Trump administration’s failure to defend the lawsuit or respond to court inquiries, questioning the $1.776 billion fund as a “branding” effort. Her ruling came days before Blanche’s confirmation hearing for attorney general. He will likely face questions about the “anti-weaponization” fund and immunity for Trump. Last month, the president nominated Blanche to lead the Justice Department.