Judge to Decide if Trump's $10 Billion Lawsuit was "Fraud on the Court."

Added: 2026-06-02

[00:00:00]So friends, today's legal development comes with one heck of a twist involving the $10 billion lawsuit Donald Trump brought against the IRS. So essentially he brought it against himself because he controls the IRS. Then you'll recall Donald Trump dismissed the case that he had brought against himself. And then Donald Trump settled with himself for $1.8 billion of our tax money with which he created a copers fund.

[00:00:44]Well, guess what? The judge who had been presiding over that case just reopened it to see if Donald Trump perpetrated a fraud on the court.

[00:01:00]Spoiler alert, it looks like he did.

[00:01:05]Let's talk about that because justice matters.

[00:01:24]Hey all, Glen Kersner here. Okay friends, so I tried to set up today's legal development in the intro. So let's go right to the new reporting.

[00:01:36]This from the New York Times headline, judge reopens Trump's IRS suit and questions his weaponization fund.

[00:01:48]The ruling was a blow to both President Trump, who had voluntarily dismissed the lawsuit last week and to the Justice Department, which used the suit to establish a fund likely intended for Trump allies.

[00:02:04]And that article begins, "A federal judge in Miami reopened President Trump's $10 billion case against the IRS in a striking turnabout, saying that she wanted to investigate grievous allegations that the hasty deal to resolve it, the lawsuit, was premised on deception."

[00:02:28]The ruling by the judge Kathleen Williams on Friday to revive the case shortly after closing it was a significant blow both to Trump, who had voluntarily dismissed the suit last week, and to the Justice Department.

[00:02:44]After the president withdrew the suit, senior department officials released a pair of extraordinary agreements that settled the case by establishing a $1.8 8 billion fund to compensate people who claimed they were victims of government weaponization by Democrats. But friends, let's call this fund what it is. It is Trump's copers fund.

[00:03:14]My editorial edition, the article continues, the deal also conferred lucrative tax benefits on Mr. Trump, his family, and his businesses.

[00:03:27]Judge Williams decision came in response to court papers filed on Wednesday by a bipartisan group of 35 former federal judges who urged her, the judge, to bring the case back to life and dig into the details of the agreement to settle it. The former judges said that Mr. Trump's settlement agreement raised serious questions about his cander toward the court and manipulation of the judicial system.

[00:04:01]Okay, friends, now let's go right to Judge Kathleen Williams short direct tur three-page order.

[00:04:12]In the case of President Donald J. Trump at all and others plaintiffs versus the Internal Revenue Service and others defendants order. This matter is before the court on the motion to reopen case filed by 35 former federal judges. In the motion, the movements, the judges asked this court to reopen the instant case pursuant to rule 60 of the federal rules of civil procedure, arguing that the court should exercise its authority under rule 60 to set aside the judgment in the lawsuit and resume its inquiry into whether there is an actual underlying case or controversy.

[00:04:57]The movements, the judges explained that although there is no settlement of record in the matter, public documents and announcements indicate that the dismissal of the case was premised on a purported settlement between the parties. In turn, the judges submit that the settlement is a product of collusion and is itself a fraud on the court.

[00:05:22]A court is empowered to investigate serious misconduct as a collateral issue within the purview of rule 11 and determine whether an attorney has abused the judicial process.

[00:05:36]Among other things, the judge cites cases authority for propositions that a litigant cannot avoid sanctions by voluntarily dismissing the case. The purpose of rule 11 is to deter baseless filings. And under rule 11, a court may impose sanctions on a lawyer for advocating a frivolous position, pursuing an unfounded claim, or and the judge emphasizes this herself, filing a lawsuit for some improper purpose.

[00:06:12]A party's decision to file a frivolous lawsuit for the sole purpose of forcing a settlement may qualify as such an improper purpose. The judge also says here the the movements, the judges advance grievous allegations that plaintiffs Trump and company 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 impromater of legality for an unlawful settlement.

[00:06:49]And here is what Judge Williams ordered Trump to do.

[00:06:55]It is ordered and adjudged that plaintiffs Trump and others shall file a response to the motion on or before June 12, 2026 detailing their positions on the matters set forth in the motion, including one, the charges of collusion and whether the parties are truly adverse. two, the assertion that dismissal in the case was premised on deception by the parties.

[00:07:24]And three, the question of whether the case should be reopened because the court was a victim of fraud.

[00:07:32]So, how about that third question from Judge Kathleen Williams directly asking, "Donald Trump, was the court a victim of your fraud?"

[00:07:45]I maintain Donald Trump used the court to essentially launder his dirty corrupt deal, his scheme, the settlement agreement by which he had his Department of Justice set up a $1.8 billion copers fund.

[00:08:09]So the January 6th rioters, the attackers, the insurrectionists could be paid for beating the hell out of police officers, for attacking the US capital, for trying to corruptly keep Donald Trump in power after he lost an election, for in a very real sense trying to bring democracy to a screeching halt. That's right. Donald Trump used the court to give this sort of the sheen of legitimacy, this corrupt scheme to set up the copers fund and to then use our taxpayer dollars to pay Trump's friends, his criminal associates, the boots of the insurrection that he ordered to march to the capital that day. Fight like hell or you won't have a country anymore. Stop the certification. stop the steel.

[00:09:06]Well, let's see how Donald Trump answers these three questions that Judge Williams has ordered him to answer no later than June 12.

[00:09:18]You know, friends, given legal developments over the past few days, it sure does seem like things are catching up with dear leader.

[00:09:28]And you know friends, even though it feels at times like our faith in the rule of law is like shaken to its core, we can never lose sight of the the bedrock principle that justice matters.

[00:09:52]Friends, as always, please stay safe, please stay tuned, and I look forward to talking with you all again tomorrow.