Judge probes whether Trump defrauded court to create $1.8 billion ‘anti-arms’ fund

A federal judge is probing whether President Donald Trump’s lawyers made the court a “fraud victim” by colluding in his lawsuit against the Internal Revenue Service (IRS) to create the controversial “anti-gun” fund.

U.S. District Judge Kathleen M. Williams opened the investigation Friday evening, giving Trump’s lawyers until June 12 to respond to allegations that they misled the court to obtain the $1.8 billion settlement related to the IRS lawsuit.

The allegations stem from a brief filed by a group of 35 former federal judges who asked the court to reopen the case due to questions about “manipulation of the justice system.”

“The Court was deceived”, we can read in their brief.

“To be clear, [Trump’s]“The settlement was not, and never will be, legally justified,” it reads. “This is because the Acting Attorney General’s order creating the Anti-Arms Fund identified the Judgment Fund and the Attorney General’s authority to enter into ‘compromise settlements’… as the basis for creating the Anti-Arms Fund. Both authorities require the existence of legitimate litigation and not, as here, collusive, sham, or fraudulent litigation.

The fund was already temporarily blocked earlier in the day by U.S. District Judge Leonie Brinkema, who said the hold was necessary to ensure no money was “irreversibly disbursed” from it as several lawsuits are pending against it.

The “Anti-Armament Fund” was created to compensate people the Trump administration considered victims of the negative actions of the Biden administration. However, the fund was immediately criticized, even by congressional Republicans, and derided as a corrupt “slush fund” for Trump’s friends and allies.

It was created after Trump withdrew his $10 billion lawsuit against the IRS for allegedly leaking his tax records during his first term. However, the former federal judges’ brief indicated that no settlement was mentioned in this dismissal.

“Here, the [former judges] advance serious allegations that plaintiffs intentionally dismissed this litigation solely to avoid judicial review of a lawsuit that “was collusive from the start” and was filed only to provide the imprimatur of legality for an illegal settlement,” Judge Williams’ order reads.

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