Federal judge says Trump IRS lawsuit sought 'judicial legitimacy' for illegal deal

President Donald Trump's legal team is being sanctioned by a federal judge over the $10 billion lawsuit that was filed against the Internal Revenue Service (IRS). The lawsuit courted controversy over a settlement deal that allowed for the creation of a $1.8 billion fund for those whom the administration deemed wrongfully targeted by federal agencies, and granted tax immunity to the President and his family.

In a blistering order on Monday, Florida District Judge Kathleen Williams said that the lawsuit was filed "for an improper purpose." Judge Williams wrote that the case was filed to obtain "judicial legitimacy" for a settlement that was not in accordance with the law. "The nature of the suit itself and the conduct of the Parties and counsel from its filing make plain that this was an attempt to use the Court to provide some legitimacy to an agreement to confer immunity to people and entities affiliated with the President and to earmark billions of dollars from American taxpayers to redress grievances not defined in the law," the judge wrote. 

As per Judge Williams, the suit was designed for a settlement that would provide some "immunity" to the President, his family members, and their businesses, The Independent reported. As part of the settlement, the Department of Justice (DOJ), in an addendum, ordered the IRS to permanently halt all ongoing and future audits or inquiries into the Trump family and the Trump Organization. The settlement also included the $1.776 billion 'Anti-Weaponization Fund' that could have compensated the January 6 rioters, but was later dismissed amid severe backlash.

Judge Kathleen Williams also reproved Trump's legal team for filing a lawsuit that she said "was never intended to be litigated, but rather to be settled on terms that could not otherwise survive public or legislative scrutiny, constitutes an improper purpose under Rule 11." Federal Rule of Civil Procedure 11 requires that attorneys certify their filings are not being used for an "improper purpose." 

The Florida District Judge referred Trump's lawyer, Alejandro Brito, to the Florida bar for consideration of whether he should be disciplined in light of the findings. Additionally, she ordered a copy of her ruling to be mailed to the State Bar of New York, of which Acting Attorney General Todd Blanche is a member, and to the District of Columbia Bar, of which Associate Attorney General Stanley Woodward is a member, CNBC reported.

Following the order, CNBC quoted a spokesman for Trump’s legal team as saying, "The IRS wrongly allowed a rogue, politically-motivated employee to leak private and confidential information about President Trump, his family, and the Trump Organization to the New York Times, ProPublica and other left-wing news outlets, which was then illegally released to millions of people. President Trump continues to hold those who wrong America and Americans accountable."