Trump may 'settle' lawsuit against himself by creating a slush fund worth $1.7 billion
Miami federal judge forced Trump's hand by asking tough questions
By J.C. Bruce
After a Florida federal judge threw a monkey wrench in Donald Trump’s plans to sue American taxpayers for $10 billion, it now appears he has worked out a “settlement”—essentially with himself—to create a $1.7 billion slush fund he will control with little oversight.
Trump was facing a May 20 deadline imposed by U.S. District Court Judge Kathleen Williams of Miami to explain how, as the head of the government’s executive branch, he could sue the Internal Revenue Service, one of the agencies he oversees.
Federal law, oddly enough, requires that for a lawsuit to be legit, there must be opposing parties. Said another way, you can’t sue yourself, which is exactly the scam Trump was trying to pull.
He even acknowledged it:
“If I pay myself, that somehow will never look good,” he told reporters.
It now appears that Trump will drop his lawsuit against the IRS before Williams’ deadline — with the cooperation of Todd Blanche, the acting attorney general and Trump’s former personal attorney, a man who owes his whole career to Trump.
According to several news sources, the federal government—using our tax dollars—would create a $1.7 billion fund to be used to compensate Trump allies who allege they were harmed by the so-called “weaponization” of the Justice Department under President Joe Biden.
Meaning all the 1,600 people arrested for overrunning the U.S. Capitol on January 6, 2021, who tried to overthrow the government, and who were later pardoned by Trump, could make claims.
As ABC News reports:
The arrangement would be an unprecedented use of taxpayer dollars with little oversight. Under the terms of the potential settlement agreement, President Trump would have the authority to remove members of the commission running the fund without cause, and the commission would be under no obligation to disclose its procedures or decision-making process for awarding more than a billion dollars, the sources said.
The proposed creation of the compensation fund has led some administration officials to raise ethical concerns about the arrangement -- stemming not only from Trump suing his own government but also having control of an entity that can freely hand out $1.7 billion to his allies. When asked about his legal claims last year, Trump acknowledged the lawsuit “sort of looks bad,” but claimed he would donate any money he receives from the claims to charity. That’s the value of a slush fund that would be created to reward all of Trump’s allies who tried to overthrow the government on January 6, 2021.
Why is this happening now? Because the clock is ticking.
The story starts in Miami, where Trump’s lawsuit was filed claiming that an IRS employee improperly leaked his tax returns. The suit landed in Judge Williams’ courtroom.
Williams is no stranger to controversial cases and headlines. It was her ruling that ordered the dismantlement of Alligator Alcatraz before that decision was put on hold by an appeals court.
You may recall her colorful conclusion that "if it walks like a duck, quacks like a duck, and looks like a duck, then it's a duck," referring to the fact that the federal government was really in charge of the Everglades concentration camp and, therefore, had a responsibility to do an environmental impact study before the compound was hastily erected.
She was right, but when the feds stiffed the state for the $600 million they owed Florida taxpayers, it bolstered the argument that the swampy prison really belonged to Florida.
But now, Williams has a case with even greater consequences.
After filing his lawsuit, Trump, the plaintiff, and the Justice Department, representing the IRS, were ordered by Williams to explain themselves, and she gave them until next week to file briefs in the case.
“Typically, adverseness is found in a situation where one party is asserting its right and the other party is resisting,” Williams wrote. “Consequently, if there is no adverseness, there is no case or controversy.”
Her point was that since the Constitution says federal courts may only hear actual “controversies,” where’s the controversy?
Trump is in charge of the IRS. Now he’s suing a federal department he runs? How can you sue yourself? And if you can’t, then there is no legitimate lawsuit to be settled.
Which is why Trump and Blanche appear to be rushing to get out of this legal sinkhole they’ve fallen into, because if they don’t work out a deal before Williams’ deadline, she could throw the whole case out of court.
If that were to happen, how would Trump be able to raid the Treasury?
Horrors!
Lawyer and political commentator Harry Litman predicted this in a column he wrote on Substack earlier this week that is worth reading. Here’s a link:
So far, there has been no confirmation of these reports regarding the slush fund, and even if Blanche cuts this scandalous deal with his boss, there’s no guarantee it will survive the inevitable legal challenges.
And while they may remove themselves from Williams’ courtroom, by “settling” the suit before her deadline, the judge has another ace up her sleeve. She appointed what Litman called “a gold-plated set of legal talent” to present friend-of-the-court (or in legal-speak, amicus curiae) briefs that she knew neither Blanche nor Trump would do.
As Litman wrote
Williams’ hands are largely tied if the parties simply settle or withdraw before she rules. There would be nothing left on her docket to oversee. Even so, she can call it out for what it is and receive the briefs the amici are preparing. That spotlight matters greatly in itself. And now that she’s called attention to the government’s corrupt and unconstitutional maneuvers, other judges will have occasion to pick it up in other cases.
So, it ain’t over yet.
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J.C. Bruce
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The corruption is so blatant, transparent, extreme, unAmerican, and disgusting. Fighting it has to be a big part of the Dems. campaigns this year. Then, next year when they have hopefully taken over both branches of Congress, they can lower the hammer and prosecute this crap. Just asking questions and holding hearings won't be enough. Those who voted for them will expect impeachments and prosecutions.
I'm glad that it ain't over but at the risk of asking rhetorical questions, who will stop Trump and his regime from his outright theft of our taxpayer dollars? Corruption in our government and SCOTUS is rampant. So why are our reps in congress such outright cowards and refuse to even take the actions as given them in our Constitution to rid our country of all this lawlessness?