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Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
The consequences of a lawyer misleading the court survive the case in which it occurs, and those consequences can be profound.
Between March 2023 and December 2024, Todd Blanche earned millions of dollars as Donald Trump’s personal defense lawyer in the Stormy Daniel hush-money case, the Mar-a-Lago documents case, and the election interference case. As Acting Attorney General of the United States, he’s wading through another Trump mess.
And he’s drowning.
On May 18, Trump’s lawyers and the Department of Justice (DOJ) created an “Anti-Weaponization Fund” to settle President Trump’s frivolous lawsuit against the Internal Revenue Service (IRS). Even Senate Republicans rebelled against the prospect of using $1.776 billion in taxpayer money as Trump’s slush fund to pay January 6 insurrectionists.
To quell the uprising that was threatening Trump’s legislative agenda, Blanche met with Republicans on Capitol Hill. He made things worse as the weeklong Memorial Day break began.
Todd Blanche—who still operates as if he were Trump’s personal attorney—now has stunning legal problems of his own.
Faced with mounting pressure—from the public, congressional Republicans, and two judges who were questioning the fund’s legality—Blanche told a House committee on June 2 that the fund was not moving forward.
Some senators found comfort in Blanche’s assurances. But the same day, Trump was asked by the New York Post in a podcast interview whether he had dropped the Fund.
Trump said, “No, a court ruled against” it.
Asked again about the fund on June 3, Trump answered: “I love it. I think it’s so important.”
But the controversy over the fund’s status is diverting attention from an issue that is much more important to Trump—and a much bigger problem for Blanche: his signature on a document releasing Trump’s potential tax liabilities.
January 29, 2026: Trump filed a lawsuit against the IRS seeking $10 billion. He claimed that a former IRS contractor had illegally obtained access to and disclosed Trump’s tax returns to media outlets.
In the past, the IRS mounted aggressive defenses to similar claims. Following normal procedure, IRS attorneys prepared a 25-page memorandum outlining the flaws in Trump’s lawsuit and recommending a motion to dismiss it. But the Justice Department didn’t even enter an appearance in the case, much less seek dismissal.
Presiding US District Court Judge Kathleen Williams was concerned that there was no “actual adversity” between the parties because Trump was on both sides of the lawsuit: The president (plaintiff) controlled the IRS (defendant). She ordered Trump’s lawyers and the Justice Department to address the obvious conflict of interest by May 20.
May 18: With the court deadline approaching and Blanche’s DOJ struggling internally over a response to Judge Williams’ order, Trump’s lawyers filed a notice of voluntary dismissal. Believing that she had no choice, Judge Williams entered an order dismissing the case. The court observed that “the Notice [of dismissal] does not reference any settlement or include a stipulation of settlement,” and therefore “there is no settlement of record.”
But unbeknownst to Judge Williams, there was a settlement agreement—also dated May 18. In exchange for dismissing his frivolous case, Trump’s Justice Department would create a $1.776 billion “Anti-Weaponization Fund.”
May 19: Another element of the settlement agreement emerged. It gained less attention but was far more important to Trump. Without fanfare, the Justice Department revealed an addendum that contained an extraordinary release in favor of Trump and “related or affiliated individuals or parties…” from any matters “currently pending or that could be pending..." before the IRS or other federal government agencies or departments.
The IRS has been a recurring thorn in Trump’s side. In 2022, two of his organizations were found guilty of tax fraud and falsifying business records. The New York Times estimated that the addendum's release covered audits that could have cost Trump more than $100 million on just one of his properties.
When asked who came up with the terms for the settlement, Blanche denied that he had a role: “The president has outside counsel, and their counsel, the Department of Justice, not me.”
Except Blanche—and only Blanche—signed the addendum sealing the deal.
May 29: Judge Williams reacted to a bipartisan group of 35 former federal judges urging her to reopen Trump’s previously dismissed case. The court concluded that it had been presented with “grievous allegations that Plaintiffs voluntarily dismissed this litigation solely to avoid judicial scrutiny of a lawsuit that ‘was collusive from the start’ and was only filed to provide the imprimatur of legality for an unlawful settlement.” She cited allegations that the IRS did not “‘even try[] to defend against Plaintiffs’ claims’ despite their active opposition to nearly identical claims in other litigation” and that “Plaintiffs’ claims were ‘clearly untimely’ and therefore untenable.”
Judge Williams ordered Trump’s lawyers and the Justice Department to address allegations that they had: 1) filed a collusive suit; 2) premised the earlier dismissal notice on deception; and 3) made the court a victim of fraud.
Footnote two of the court's order focused on Blanche:
This addendum, as the non-party movants point out, may be in conflict with internal Department of Justice policies that require the Department to only enter into compromises that are "specifically limited to the immediate subject matter of the claim which was in fact compromised." The addendum was signed only by the Acting Attorney General [Todd Blanche]. (Emphasis supplied)
Apart from Blanche’s conflict of interest problem, under DOJ policy dating to 1934, the attorney general doesn’t even have the legal authority to stop civil tax audits. And after the revelations of President Richard Nixon’s abuse of the IRS, it has been “unlawful for the President and any employee of the Executive Office of the President, among other officials, to directly or indirectly request that the IRS terminate any ongoing audit or investigation of any particular taxpayer.” (Emphasis in original)
If Judge Williams concludes that Trump’s lawyers or Justice Department attorneys deceived her in connection with the original dismissal of the case, even voiding the settlement in its entirety won’t end the matter. The consequences of a lawyer misleading the court survive the case in which it occurs, and those consequences can be profound.
The addendum gives Trump a stunning victory. And Todd Blanche—who still operates as if he were Trump’s personal attorney—now has stunning legal problems of his own.
It’s a classic Trump outcome: Trump wins; his loyalist loses.
A formal letter to Acting Attorney General Todd Blanche, faithfully submitted.
Dear Acting Attorney General Todd Blanche,
I am writing to formally submit my application to your newly established federal “Anti-Weaponization Fund” for compensation in the form of a cash payment for damages incurred at the hands of the United States government.
As you stated while announcing President Trump’s new $1.776 billion fund, “The machinery of government should never be weaponized against any American, and it is this Department’s intention to make right the wrongs that were previously done while ensuring this never happens again.”
Todd, if I may, I saw your former client — President Trump, for whom you previously provided legal representation — backed you up, saying, “This is reimbursing people who were horribly treated.”
Additionally, Todd, I read an Associated Press report noting that during congressional testimony you stated that you “wouldn’t rule out the possibility that rioters who assaulted police on Jan. 6 would be eligible for fund payouts.” After hearing your remarkably broad interpretation of governmental victimization, I felt compelled to share with you what the government has done to me and my family by writing the letter below — which reveals several forms of government abuse my family and I have endured which, while you may not find as severe as the temporary loss of access to the U.S. Capitol experienced by individuals convicted of felonies related to January 6, nonetheless caused considerable hardship for us.
I was initially reassured that my request was reasonable after learning that Adam Johnson — best known for carrying Speaker Nancy Pelosi’s lectern through the Capitol during the January 6 attack — is reportedly considering a claim of up to $5 million himself.
However, after learning that Brandon Fellows — another January 6 defendant pardoned by President Trump — reportedly plans to seek $30 million from the fund, including $21.5 million for what he described as “wrongful imprisonment,” I realized that the harms experienced by my family and me may in fact fall closer to Mr. Fellows’s compensation range.
So, after reviewing your department’s stated principles, apparent standards, and anticipated applicant pool, I believe I am highly qualified for compensation and would like to make a modest request of $30 million.
In fact, Todd, I believe I possess two major qualifications that should place me among the strongest candidates for compensation, which I will detail below.
First, since this appears to function as a reparations program for people harmed by state injustice, I should begin by saying that I come from a family with a long legacy of being brutalized by the United States. And if you think the January 6 defendants have a compelling claim for compensation due to governmental mistreatment, wait until you hear about this historical episode called slavery.
My great-great-grandparents, Laura and Thomas Lenoir, were enslaved in Marion County, Mississippi, and spent their lives laboring without compensation in a nation loudly proclaiming “liberty” while designating Black people as property. After decades spent tracing our family history, my father recently discovered the very plantation where they were enslaved— a breakthrough that finally allowed our family to identify the precise location where generations of uncompensated labor helped build this country’s wealth.
My ancestors worked this land they did not own, built wealth they could not keep, and endured violence they could not legally resist. No compensation was ever provided for the stolen labor, stolen children, stolen wages, stolen land, stolen futures, or the generations of poverty and discrimination that followed emancipation. Stories of Laura’s beatings and brutal treatment have been passed down through my family for generations.
In explaining why she believed January 6 defendants deserved compensation, Rachel Powell — who prosecutors identified as one of the first rioters to breach Capitol grounds and who was filmed using a battering ram to smash a Capitol window — recently stated: “We endured a lot. Our lives are still not the same. I don’t know what kind of price you can put on that.”
Todd, I must admit I found Ms. Powell’s reflections unexpectedly relatable. Indeed, many descendants of slavery have similarly struggled to determine what monetary figure might adequately compensate for generations of forced labor and legally sanctioned terror.
For many years, I was informed that reparations for descendants of slavery were unrealistic, unaffordable, divisive, or simply impossible. Republican and Democratic leaders alike repeatedly explained that while slavery was unfortunate, there was no practical mechanism for compensating descendants in the present day. However, your department’s new fund has helped me understand that no sum of money is too large for the government to produce once it decides that a great injustice has been perpetrated.
And then there is the symbolism of the fund’s exact amount — $1.776 billion — which is especially moving. President Trump, with his trademark subtlety and keen sense of gravitas, must have chosen this specific figure for providing reparations to people claiming mistreatment by the government as a fitting tribute to a nation founded by those who declared liberty for all in 1776 while simultaneously enslaving and brutalizing Black people.
My second major qualification is that, like many of the fund’s anticipated beneficiaries who stormed the capitol building on January 6, I was also arrested at a capitol building during a political protest.
In 2012, Washington state announced a special legislative session to determine how to slash education and healthcare budgets by some $2 Billion during the aftermath of the Great Recession. At the time, I was helping organize with the Social Equity Educators (SEE), a group of educators fighting against austerity and for educational justice.
We joined a much larger mass protest at the Washington State Capitol in Olympia to oppose billions of dollars in cuts to public services. Just before lawmakers gaveled in the special budget cutting session inside the House Ways and Means Committee meeting room, several of us managed to enter the chamber before they locked the door to the many protestors surrounding the building. The moment the session began, we mic-checked the room and read aloud the Washington State Constitution language that explicitly specifies funding education is the “paramount duty” of the state, and we declared therefore the state not only had a moral obligation but also a legal obligation to fully fund public education.
After finishing the statement, I produced a pair of plastic handcuffs I got at the dollar store and invited the legislators into my custody for what I announced was citizen’s arrest.
As I approached the legislators’ benches carrying self-made citizen’s arrest warrants to issue to each member, a police officer apparently arrived at a somewhat different interpretation of the law than I had. In an astonishing twist, he arrested me instead of the legislators.
He grabbed my arm, forced it behind my back, and cinched the handcuffs tightly around my wrists. Officers then moved me into a back room while they attempted to figure out how to remove me from the building as hundreds of protesters outside chanted, “Let the teacher go!”
Eventually, police whisked me out and pushed me into the back of a squad car and repeatedly questioned me about my actions even after I informed them that I wished to speak only in the presence of legal counsel. I was transported to a nearby jail, had my mugshot taken, ordered to exchange my clothes for a jail-issued orange jumpsuit, and placed in a jail cell with several other people for the evening.
While I was in jail, unbeknownst to me, my students at Garfield High School created a Facebook page titled “Free Mr. Hagopian.” When I returned to school the next day, students had changed the page into “Seattle Student Walkout for Education.”
Within twenty-four hours of my arrest, more than 500 Garfield students organized a mass walkout protesting the education cuts, carrying signs reading “Fund Our Future” and chanting, “We’re the future of our nation, no more cuts to education!” Students later formed a coalition called Students of Washington for Change to pressure the legislature through protests and letter-writing campaigns.
Importantly, Todd, not long afterward the Washington State Supreme Court ruled that the legislature actually was violating the constitution in what became known as the McCleary decision, so I trust that my legal vindication strengthens my application considerably. And if generations of slavery fall short in qualifying me for compensation, I trust my arrest at a capitol while protesting government lawbreaking will place me in strong standing under your department’s standards.
Now Todd, in the interest of full transparency, I should acknowledge one possible weakness in my case. The Department of Justice fact sheet explaining your fund notes that “Claims are awarded on a case-by-case basis, and the Commissioners must consider a claimant’s personal conduct and character when making a determination.”
I must admit, Todd, this language gave me some pause.
While I was arrested at a capitol building during a large political protest — something I understand may weigh heavily in my favor given your department’s apparent sympathy for January 6 defendants — I did not use a battering ram to breach the Capitol building, assault police officers, carry Confederate flags through the halls of government, or attempt to overturn the results of a presidential election.
In retrospect, I recognize this may complicate my claim.
Still, I would respectfully submit that my application remains highly competitive. Unlike many January 6 defendants, when I protested at a capitol, the court later ruled that the government I was protesting had actually broken the law.
Todd, thank you for taking the time to read and consider my formal application for compensation from the Anti-Weaponization Fund.
Once my claim has been approved, you may issue a direct payment in the form of a contribution to Where I Got My Name: Down in Mississippi — a documentary film project about my father discovering the plantation where our family had been enslaved and our journey to Mississippi to recover our family’s history — or to Rethinking Schools and the Zinn Education Project, organizations that have spent decades supporting honest education about the history of this country and the people who were truly “horribly treated” by their government (as President Trump put it).
Todd, I appreciate your department’s newfound commitment to reparative justice, and I look forward to receiving confirmation of my $30 million award soon.
Sincerely,
Jesse Hagopian
"Taxpayer dollars should serve the American people, not finance political favors or reward blind, and sometimes violent, loyalty to a single politician," said the head of one advocacy group.
A federal judge in Virginia on Friday temporarily blocked the Trump administration from moving to create a so-called "Anti-Weaponization Fund" that would use nearly $1.8 billion in taxpayer money to reward supporters, including people convicted of seditious and violent felonies during the January 6 insurrection.
Judge Leonie M. Brinkema of the Federal District Court for the Eastern District of Virginia issued a 2-page order barring any action “pursuant to the creation or operation of the Anti-Weaponization Fund, which includes the transferring of money to the Fund; the consideration of any claims submitted to the Fund; and the disbursing of any funds from the Fund.”
Brinkema—a nominee of former President Bill Clinton—set a June 12 hearing date for arguments on whether she should extend the pause amid numerous legal challenges to what critics have called a "felon-to-felon slush fund," a reference to President Donald Trump's 34 felony convictions and the serious crimes, including violent assaults on police officers with dangerous weapons, committed by January 6 insurrectionists who were later pardoned by the president.
In January, Trump sued the Internal Revenue Service and Treasury Department for $10 billion over the leak of his tax returns by a former IRS contractor. Trump’s own Justice Department settled the case earlier this month by agreeing to create the roughly $1.776 billion settlement slush fund for people claiming they were unfairly targeted by the government.
January 6 insurrectionists are expected to be among the fund's beneficiaries. Trump was accused of rewarding political violence by granting clemency to roughly 1,500 Capitol attackers, dozens of whom have since been charged or convicted for serious crimes, including child sex crimes, rape, grand larceny, burglary, home invasion, gun violations, death threats against public officials, and fatal DUI incidents.
Brinkema's decision came less than 24 hours after plaintiffs in one of the legal challenges to the fund, who are represented by Democracy Forward, filed a motion for emergency relief. Plaintiffs' attorneys told Brinkema that they’re “already being irreparably harmed by the unconstitutional and unlawful creation of the Anti-Weaponization Fund," and that such harm "will be permanent if the administration takes action, including by irreversibly disbursing funds, before this court can act."
Democracy Forward president and CEO Skye Perryman said following Friday's ruling, "Today, a federal court recognized the urgent need to prevent taxpayer dollars from being distributed through a secretive and unprecedented political compensation scheme before the legality of that program can be fully reviewed by the court."
“This is a victory for transparency, the rule of law, and the American people," Perryman added. "No administration has the authority to spend public money through a political rewards program that Congress never authorized. We look forward to the next stages in this case.”
Case plaintiffs issued a statement following Brinkema's order:
We are pleased that the court granted our request to ensure the administration does not distribute taxpayer funds until our motion has been considered. The court acted quickly to stop this unlawful scheme before money could start flowing out the door. The Trump-Vance administration attempted to create a secretive, taxpayer-funded program that rewards political allies, operates without oversight, and evades the constitutional safeguards that protect our democracy. We are grateful that the court recognized the urgency of the situation and acted to preserve the status quo before further irreparable harm occurred.
Democratic lawmakers welcomed Brinkema's order, with Senate Majority Leader Chuck Schumer (D-NY) calling it "an important win."
"Of all Trump’s corrupt schemes, his insurrectionist slush fund is one of the most depraved," said Schumer, who acknowledged the battle over Trump's fund is far from over. "We’ll keep fighting in the courts and in Congress to make sure this $2 billion giveaway to cop beaters, criminals, and MAGA cronies never sees the light of day."
Congresswoman Pramila Jayapal (D-Wash.) posted on social media: "I’ve said from the start that this is an absolute waste of taxpayer dollars. This needs to be stopped permanently."
Stand Up America executive director Christina Harvey said in a statement that “today’s ruling is a critical reminder that no one is above the law, not even the president of the United States."
"Trump’s $1.8 billion slush fund for his friends and diehard loyalists—including those who tried to overthrow our democracy on January 6—is a blatant abuse of power, and the court rightly blocked it," Harvey added. "Taxpayer dollars should serve the American people, not finance political favors or reward blind, and sometimes violent, loyalty to a single politician."