Judge refers Trump lawyers for discipline over IRS lawsuit settlement

A federal judge in Miami referred one of Donald Trump’s lawyers to the Florida Bar on Sunday and restricted another lawyer’s ability to practice in the Southern District of Florida after finding that the president’s $10 billion IRS lawsuit was filed for an improper purpose. U.S. District Judge Kathleen Williams said the case was brought in “bad faith” and was used to manipulate the judicial process into supporting a settlement that created a $1.776 billion Anti-Weaponization Fund.

Williams said the lawsuit over Trump’s leaked tax returns was not a legitimate adversarial filing but a vehicle to justify terms that went far beyond the dispute itself. In a 56-page ruling, she said the case had been used to create the fund and to secure sweeping tax protections, then barred the Justice Department, the IRS and Trump from citing the deal as evidence of a settlement in the case.

The disciplinary fallout was immediate. Williams referred Trump lawyer Alejandro Brito to the Florida Bar for potential discipline and limited Daniel Epstein’s ability to practice in the Southern District of Florida. She also ordered a copy of her ruling sent to the State Bar of New York and the District of Columbia Bar, widening the scrutiny beyond Florida and signaling that the conduct could follow the lawyers across jurisdictions.

The ruling deepened the legal jeopardy around a deal that had already drawn bipartisan criticism and separate court scrutiny. The Justice Department announced the Anti-Weaponization Fund on May 18 as part of the settlement, then later said it had permanently abandoned the fund. Williams launched an inquiry into the settlement on May 29, after concerns grew that the suit may have been used as a pretext to reach the fund agreement.

For lawyers, the consequences go well beyond embarrassment. A bar referral can trigger an investigation that may lead to reprimand, suspension or other sanctions, while limits on court admission can affect future federal practice in a major jurisdiction. In a politically charged case, Williams’ ruling sends a blunt message that courtroom leverage cannot be used to dress up a private deal as lawful settlement, and that attorneys who help build that record can face discipline of their own.