Donald Trump settlement fallout puts Todd Blanche at risk of disbarment

President Donald Trump abandoned a $1.8 billion IRS settlement, prompting 35 retired federal judges to file a motion on May 27 alleging fraud against the court. The judges said the Department of Justice misled U.S. District Judge Kathleen Williams by announcing the settlement publicly without court notice and using it to transfer $1.776 billion to Trump, his family and businesses while claiming to release all federal claims.

Attorney General Todd Blanche moved to dismiss the case two days before a brief on jurisdiction was due and failed to raise defenses the DOJ was required to assert. Judges warned that this could constitute fraud on the court, a ground for immediate suspension or permanent disbarment in New York. Judge Williams ordered the DOJ to respond by June 14.