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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.
"Every senator took an oath to support and defend the Constitution, and honoring that oath means using the Senate's confirmation authority to protect the independence of federal law enforcement."
In a letter to US senators Thursday, more than two dozen legal and advocacy groups expressed their commitment to "the rule of law and the independence of federal law enforcement" as they urged the Senate to reject President Donald Trump's impending nomination of acting US Attorney General Todd Blanche to officially take the helm of the Department of Justice.
Considering that Blanche previously directly represented Trump as his defense attorney in three separate criminal cases, said the groups, which form the Not Above the Law Coalition, "Blanche as attorney general would represent a new low, and an unprecedented corruption of the institution itself."
"In 2023, Blanche left his law firm to become Trump's personal criminal defense attorney across three concurrent cases: the hush money trial, the federal classified documents case, and matters related to January 6th," wrote the coalition, which includes Democracy Defenders Fund, End Citizens United, and Public Citizen. "For two years, he had one job: Keep local, state, and federal investigators away from his client Donald Trump, and in particular, to shield Trump from the Justice Department.
"Now he controls that very federal agency," said the organizations, noting that he still operates as "Trump's lawyer."
Since joining the administration—first as deputy attorney general serving alongside former Attorney General Pam Bondi, and then taking over for her in an acting capacity after she was fired—Blanche has refused to recuse himself from all matters pertaining to Trump, considering his former work representing the president; boasted that the FBI "cleaned house" after firing career prosecutors who had been involved in investigating Trump; filed motions to vacate seditious conspiracy convictions of several people who attacked the US Capitol on January 6; and created a since-blocked $1.8 billion "slush fund" meant to disburse money to Trump's allies due to what the president views as unfair prosecutions.
"The only thing that changed when Blanche walked into the DOJ is that now the American people are paying the bill while he weaponized the department against Trump’s perceived enemies and cut deals for his boss."
Blanche has also played a major role in weaponizing the DOJ against Trump's "perceived enemies," including the Southern Poverty Law Center and former FBI Director James Comey, both of whom he obtained indictments for.
The Not Above the Law Coalition said the "Block Blanche" campaign launched by the letter would target senators who show willingness to confirm the compromised nominee.
The co-chairs of the group—including Lisa Gilbert of Public Citizen, Praveen Fernandes of the Constitutional Accountability Center, Kelsey Herbert of MoveOn, and Brett Edkins of Stand Up America—emphasized that Blanche "is not America's attorney general."
"He was Donald Trump's criminal defense lawyer and personal fixer before working for the Justice Department, and he never stopped," they said. "The only thing that changed when Blanche walked into the DOJ is that now the American people are paying the bill while he weaponized the department against Trump’s perceived enemies and cut deals for his boss."
"Every senator took an oath to support and defend the Constitution, and honoring that oath means using the Senate's confirmation authority to protect the independence of federal law enforcement," the co-chairs added. "We're here to remind them of this duty to our nation."
The groups added that Blanche's conduct and the announcement of his nomination make clear that "former Attorney General Pam Bondi wasn't removed because she crossed a line. She was removed because she didn't cross enough of them. Blanche's appointment escalates the weaponization of the DOJ beyond what even Bondi would execute."
"The Senate has a constitutional obligation to answer one question," said the groups. "Does the Justice Department serve the American people, or does it serve Donald Trump?"
"If the administration and its allies in Congress are truly walking away from the $1.8 billion criminal enrichment fund, they should have no problem joining us in banning it outright," the Maryland Democrat said.
Though acting US Attorney General Todd Blanche has said President Donald Trump’s $1.8 billion “weaponization” slush fund is now “dead,” Democratic Rep. Jamie Raskin on Thursday unveiled draft legislation that would eliminate what he describes as a “super pardon” buried in the Department of Justice settlement reached last month.
While Blanche—whom Trump said he plans to nominate for a full term as attorney general—has backed off the fund that would allow the DOJ to disburse taxpayer money to Trump allies and January 6 insurrectionists amid bipartisan backlash, a news release from Raskin’s (D-Md.) office on Thursday said the acting AG has done nothing to rescind “the mother of all sweetheart deals he tucked into his unprecedented settlement with Trump.”
The settlement, created in exchange for Trump dropping a $10 billion lawsuit against the Internal Revenue Service (IRS) for improperly leaking his tax returns, gives Trump, his entire family, and all their business ventures total and permanent immunity for “any matters currently pending or that could be pending” not only before the IRS, which Trump sued in the case that led to the settlement, but also before “other agencies or departments.”
The Maryland Democrat also said that despite retreating on the "weaponization" fund, the DOJ is still using its Judgment Fund to improperly reward the president's allies.
According to the Washington Post, as of April, the DOJ had already paid $8.5 million to prominent Trump allies who claimed to have been wrongly targeted by the Biden administration, even though no court formally determined that they had been.
“If the administration and its allies in Congress are truly walking away from the $1.8 billion criminal enrichment fund, they should have no problem joining us in banning it outright,” Raskin said. “But no one should be fooled by Trump and Blanche’s tactical pause: Nothing has been dismantled, and nothing has been renounced. Trump’s scheme to raid the Judgment Fund, bankroll political allies using taxpayer cash, and score a sweeping Super Pardon is alive and well and remains a clear and present threat to our constitutional order.”
Raskin, who is the ranking member of the House Judiciary Committee, introduced a new legislative package on Thursday, aiming to destroy the remaining vestiges of the DOJ deal and ensure that future presidents can never use federal settlements to reward themselves.
The Block Lawless Agreements and Nullify Corrupt Handouts and Emoluments (BLANCHE) Act, bars sitting presidents from entering settlements for money damages with the federal government and requires independent judicial oversight of any such agreements, including ones that grant the president "super pardons" like the one granted to Trump by the DOJ.
“My legislative package would end the slush fund, outlaw collusive settlements, and make clear that no president can use taxpayer dollars to cut partisan loyalty reward checks,” Raskin said.
He also introduced the Constitutional Rights Defense Act, which would allow individuals to file suits against the federal government when their rights are violated by agents of the state.
In contrast with the January 6 Capitol riot participants who have been claiming compensation under the fund, Raskin said his bill "ensures that all people who have actually had their constitutional rights violated by the government will have access to justice."
Raskin has previously introduced legislation that would block the use of federal funds to finance the Trump IRS settlement and prohibit payouts to January 6 Capitol riot participants and other Trump allies, including family members.
"Congress must act with urgency to shut down this presidential plunder once and for all,” Raskin said.