Trump Team Now Facing Bar Referrals by Obama-Appointed Judge

On Monday, an Obama-appointed federal judge issued a sweeping sanctions order after President Trump's lawsuit against the Internal Revenue Service (IRS) had already been voluntarily dismissed, concluding that because Trump ultimately controls the IRS, the parties were never truly adverse. The judge also referred several members of President Trump's legal team to their state bar associations for possible disciplinary action.
The X post from independent journalist Breanna Morello says:
An Obama-appointee Judge Kathleen Williams says President Donald Trump’s lawsuit against the IRS over his leaked tax returns was filed for an “improper purpose.”
The judge referred Acting Attorney General Todd Blanche, Associate Attorney General Stanley Woodward, and President Trump’s attorneys to their respective state bar authorities for potential disciplinary review.
The judge says President Trump controls the IRS and Treasury so the plaintiffs and defendants were on the same team. She claims, "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. Under these circumstances, the Court may reasonably infer that the Government failed to defend this lawsuit or to respond to the Court’s jurisdictional inquiry because its position would not withstand judicial scrutiny and because resolution of the threshold issues identified by the Court would not have favored its preferred outcome to this case."
She also alleges the lawsuit was filed just to get the court’s official approval for a deal they had already arranged.
I have reached out to the DOJ for comment.
This decision casts some doubt on the Trump administration's planned Anti-Weaponization Fund, which has in any case effectively been scuppered; Acting Attorney General Todd Blanche has already indicated that the plans for the fund will not be moving forward.
As of this writing, the Trump administration has not commented on the ruling.
Read More: After IRS Leak Scandal, Trump DOJ Slams the Door on Trump Tax Audits
Obama-Appointed Judge Reopens Trump IRS Lawsuit, Demands Answers on $1.776 Billion Fund
The judge also indicated that, should President Trump have filed the lawsuit when he was a private citizen, the outcome may have been different:
Williams suggested if Trump had brought the lawsuit “in a timely fashion while he was a private citizen,” the case might have been resolved within the span of months.
“But that is not what happened,” she wrote. “Instead, President Trump did not pursue his claims until he once again occupied the White House and had appointed his former lawyer, and the former lawyer of persons who are putative beneficiaries of the ‘Anti-Weaponization Fund’ to prominent positions in the DOJ.”
The decision effectively turns one of the administration's own legal victories on presidential authority against it, with Williams reasoning that if Trump exercises direct control over the IRS and Treasury, they cannot function as truly adverse parties in federal court. It's an interesting point; opposing parties in a lawsuit are adversaries, and it's interesting that his case hinged on two parties that are, effectively, part of the same team.
In any case, the matter likely won't end here. Stay tuned.










