A federal judge has sanctioned attorneys aligned with President Donald Trump and referred at least one lawyer to the Florida Bar after finding that a $1.776 billion lawsuit against the IRS was filed for improper purposes with no genuine adversity between the parties.
Background
U.S. District Judge Kathleen Williams, an Obama appointee presiding in the Southern District of Florida, issued a 71-page order Monday detailing how Trump's private attorneys and senior Justice Department officials orchestrated what she described as a "non-adversarial, collusive" scheme to extract a massive settlement from the federal government.
The case centered on claims that the IRS improperly disclosed the president's tax information. According to Williams' ruling, Trump moved to voluntarily dismiss the lawsuit just as the judge was preparing to rule on whether there was actually a case or controversy before her—an action the court found highly significant.
In late May, 35 former federal judges had urged Williams to "reopen" the matter after the dismissal motion. The judges raised concerns about the unusual nature of the proceedings, particularly noting that the DOJ—led by Acting Attorney General Todd Blanche—had failed to file a single pleading challenging Trump's claims despite numerous potential lines of attack.
The Investigation
Williams' order detailed what she characterized as months of silence from government attorneys—a "silent docket" that spoke volumes about the true nature of the proceedings. According to the ruling, DOJ officials never appeared in court, never challenged the plaintiffs' assertions, and never filed any responsive pleadings.
"The Parties here are not private actors to a mine-run dispute," Williams wrote. "Lead Plaintiff and Defendants are public servants—the pinnacle of the Executive Branch—sworn to uphold the law, faithfully perform the duties of their office, and protect the interests of the American public."
The judge found that rather than pursuing legitimate legal remedies, Trump waited until returning to the White House with appointed allies in top DOJ positions before filing suit. She noted that Acting Attorney General Todd Blanche—a former lawyer for both Trump and beneficiaries of the "Anti-Weaponization Fund"—negotiated on behalf of the United States with Trump's current counsel.
Williams ordered the clerk to mail copies of her ruling to the State Bar of New York, where Blanche faces an ethics investigation, and to disciplinary authorities in Washington, D.C., for Associate Attorney General Stanley Woodward. Both attorneys signed the disputed "settlement" agreement.
Key Takeaways
- Judge Kathleen Williams found Trump's lawsuit against the IRS was brought for an 'improper purpose' with no genuine adversity between parties
- The $1.776 billion 'Anti-Weaponization Fund' claim had 'no viable basis in law or fact,' according to the ruling
- Attorney Alejandro Brito was referred to the Florida Bar for potential disciplinary action as sanctions
- Attorney Daniel Z. Epstein was denied pro hac vice admission in the Southern District of Florida for one year
- DOJ officials under Acting AG Todd Blanche never filed a single responsive pleading during months of proceedings
- The judge compared the scheme to Trump's failed RICO lawsuit against Hillary Clinton, which also resulted in sanctions
What's Next
The referrals to bar authorities in New York and Washington could result in disciplinary proceedings against senior Justice Department officials. Attorney Alejandro Brito's Florida Bar matter will proceed under that state's disciplinary framework, while Epstein remains barred from appearing in Florida federal courts for at least one year. Trump's legal team has maintained that the president "continues to hold those who wrong America and Americans accountable," asserting that IRS employees improperly leaked confidential tax information to media outlets.