improper

WASHINGTON — President Trump’s lawsuit against the Internal Revenue Service over his leaked tax returns was filed for an “improper purpose,” a judge said Monday in a scathing decision that referred one of his lawyers for discipline and characterized the $10-billion complaint as an exercise in self-dealing.

U.S. District Judge Kathleen Williams accused Trump of having manipulated the court system when he sued a federal agency under his control, bypassing a requirement that parties in a lawsuit must have adverse interests and laying the groundwork for a settlement last spring that granted him immunity from tax audits and created a fund to compensate allies of the president who say they were unjustly persecuted.

Though the practical impacts of the ruling may be limited given the administration’s public pronouncements that the so-called $1.776 billion Anti-Weaponization Fund has been abandoned, the judge’s ruling nonetheless amounts to a scathing rebuke of the Trump administration and resurfaces a politically damaging storyline for acting Atty. Gen. Todd Blanche just as he prepares to face the Senate Judiciary Committee for his confirmation hearing Wednesday.

“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,” Williams wrote in her ruling.

She added: “The President may be the functional ‘dominus litus’ of the Executive Branch, but as a party to a civil suit, he, as well as all the parties and lawyers before a court, are bound by the rules. Ensuring that our courts are used only for the express purpose created by the Constitution is the obligation of every judge and an obligation that this Court must discharge in light of the matter before it. ”

The judge pointed to Blanche’s congressional testimony in early June in which he revealed that the “anti-weaponization” fund was no longer moving forward amid intense bipartisan backlash. Though nothing had been filed in court, Blanche appeared confident in his testimony that he “could speak for, and bind, both sides of this matter,” the judge wrote.

“Acting Attorney General Blanche’s apparent capacity to speak for both Plaintiffs and Defendants, sign a ‘settlement’ document on behalf of all Parties to this action, and then repudiate part of that agreement, demonstrates that there was only one party whose interests were being represented throughout this case,” the judge wrote.

Tucker and Richer write for the Associated Press. AP writers Fatima Hussein and Michelle L. Price contributed to this report.

July 13 (UPI) — A federal judge in Florida said Monday that President Donald Trump sued the Internal Revenue Service for an “improper purpose” to reach a settlement with the Justice Department earlier this year.

U.S. District Judge Kathleen Williams in the Southern District of Florida added that the settlement Trump reached with the Justice Department protecting him and his family from tax audits is no longer valid.

Williams said Trump’s settlement with a Cabinet-level agency that he presides over is an attempt to “manipulate the judicial process.”

“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,” Williams wrote.

“In abdicating its responsibility to zealously defend the interests of the United States, the Government entered into a ‘settlement’ that deviated from its litigation posture in similar actions, disregarded DOJ policies, and accomplished objectives beyond those authorized, as well as those specifically prohibited, by law.”

Trump reached a settlement with the government after suing the IRS for $10 billion over a contractor leaking his tax information. Trump is the first president or nominee from the two major political parties in more than 40 years to not disclose his tax information.

Williams has referred Trump’s attorney in the lawsuit, Alejandro Brito, to the Florida bar. The bar will consider whether Brito should be disciplined based on Williams’ finding in her order. She is also sending a copy of her order to the State Bar of New York, where Acting Attorney Todd Blanche is a member.