Former judges call for fraud inquiry into Donald Trump's IRS lawsuit settlement deal

The lawsuit against the Internal Revenue Service (IRS) by the Trumps may have been closed, but the judge who closed the case is now being urged by a bipartisan group of 35 former federal judges to reopen the case and inquire whether the compensation deal could be challenged as an act of fraud. The judges are represented by Democracy Defenders, a nonprofit group, and two law firms, Susman Godfrey and Platkin L.L.P., as per the New York Times.

The motion, which was filed in Federal District Court in Miami, urges Judge Kathleen M. Williams to reopen the case she closed a week ago. The Trumps had filed a lawsuit against the IRS seeking $10 million after their tax returns were leaked. As compensation, the Department of Justice (DOJ) created a fund worth almost $1.8 billion, which would be given to those who believe they were unfairly treated under previous administrations. Additionally, the deal provided personal tax immunity protections to Trump, his family, and his businesses.

"The purported 'settlement' that was publicly disclosed after this court dismissed this matter raises profound questions about the parties' candor toward the court and manipulation of the judicial system, which threatens to undermine confidence in the administration of justice," lawyers for the former judges wrote. The DOJ, however, called the lawsuit "frivolous," claiming that there was nothing untoward about the settlement.

"It is a routine move for plaintiffs to dismiss cases without referencing any settlement," a spokesperson for the department said. "This motion is frivolous, and there is nothing improper about this agreement." The compensation fund, also known as the 'anti-weaponization fund,' has raised concerns among Senate Republicans, who believe that taxpayer money could be used to compensate people involved in the January 6, 2020, Capitol riots.

The former judges claimed in the lawsuit that President Trump used his lawsuit to pressure the IRS into getting "unlawful private benefits" for himself, his family, and his businesses. It also claimed that the President avoided "judicial scrutiny" by "short-circuiting" Judge Williams' duty to examine the terms of the deal. Trump's compensation package from the DOJ has been the subject of immense criticism in recent times.

Rep. Ted Lieu claimed that Acting Attorney General Todd Blanche, who oversaw the deal, would be disbarred after the midterm elections in November. Sen. Mark Kelly believes that the DOJ gave the Trumps immunity from the IRS. "Trump's DOJ agreed to give him and his family immunity from the IRS. Under his administration, it's one set of laws for Trump and his friends, and another for everyone else," he wrote in a post on X.

Republican members of Congress have criticized the anti-weaponization fund as well, with Rep. Mike Flood saying, "I do not think that one penny of any fund should ever go to any January 6 insurrectionist that was in the Capitol…I do not think we should be creating a fund for people who commit physical violence against law enforcement."