DOJ, Trump’s settlement and ‘weaponization’ fund is ‘outrageous’

Listen to this article

Disgusting. Reprehensible. Outrageous. Corrupt. Unprecedented.

There are simply not enough words to describe the actions of Acting Attorney General Todd Blanche in “settling” a lawsuit filed by Donald Trump against the IRS. The “settlement” creates a slush fund of $1.7 billion of taxpayers’ dollars that will be doled out to those who believe they were “victims” of government weaponization against them.

The applications by these “victims” will be reviewed by a five-member commission appointed by Blanche, only one of whom will be appointed “in consultation” with Congress. The settlement notes that “once funds are deposited” into the account, “the United States has no liability whatsoever for the protection … of those funds, regardless of … fraudulent transfers, or any other fraud or misuse of the funds.” Additionally, because filing claims with the fund is voluntary, “there shall be no appeal, arbitration or judicial review of claims …”

In an attempt to make the fund appear “lawful” and not unprecedented, Blanche’s settlement notes that “[p]revious cases have been settled on similar terms” and cites Keepseagle v. Vilsack, 102 F.Supp.3d 306 (D.C. 2015). But Blanche, as a lawyer, must surely know how disingenuous this analogy is.

The settlement in Keepseagle concerns government payment to a group of Native American farmers and ranchers who had sued the U.S. Department of Agriculture for racial discrimination because they were not given the same loan terms as white farmers and ranchers. The settlement required that all claims be approved by the court, which also had clear guidelines for those seeking compensation to ensure they truly belonged to the Native American class suing.

None of those guidelines applies in Blanche’s settlement. There is no judicial oversight and no limitation on who can apply for compensation. As Blanche told a Senate committee before whom he testified, “anyone in the country” can apply. And who receives compensation is subject solely to the whim of the “commissioners.”

Adding insult to injury, the settlement order says the U.S. “releases, waives, acquits and forever discharges” Trump and is “forever barred and precluded” from pursuing claims, examinations, reviews, appeals, monetary relief and other actions against Trump and “related or affiliated individuals,” including family members, trusts, parent companies and subsidiaries for any previously filed tax returns. Why this is a necessary term of the settlement is incomprehensible.

The suit was brought by Trump because a contractor leaked his tax returns (showing he paid little to no taxes in 2015 through 2020). Why should the IRS. be precluded from pursuing examinations of Trump’s previously filed tax returns?

This patently unlawful agreement is destructive to our democracy and to the rule of law.

EDITORIAL ADVISORY BOARD MEMBERS

James B. Astrachan, Chair

Gary E. Bair

Jill P. Carter

Arthur F. Fergenson

Nancy Forster

Susan Francis

Julie C. Janofsky

Ericka N. King

George Liebmann

George Nilson

Steven I. Platt

Angela W. Russell

Debra G. Schubert

Jeff Sovern

H. Mark Stichel

The Daily Record Editorial Advisory Board is composed of members of the legal profession who serve voluntarily and are independent of The Daily Record. Through their ongoing exchange of views, members of the board attempt to develop consensus on issues of importance to the bench, bar and public. When their minds meet, unsigned opinions will result. When they differ, or if a conflict exists, majority views and the names of members who do not participate will appear. Members of the community are invited to contribute letters to the editor and/or columns about opinions expressed by the Editorial Advisory Board.