Politics
11th Circuit leaves sanctions in place over Trump-IRS settlement
A federal appeals court declined to pause sanctions against two lawyers involved in President Donald Trump’s tax-return lawsuit settlement. The lower-court judge had found the case was manufactured to support a deal involving federal tax liabilities and a $1.776 billion compensation fund.
A three-judge panel of the 11th U.S. Circuit Court of Appeals on Tuesday declined to temporarily lift sanctions imposed on two lawyers involved in President Donald Trump’s lawsuit against the Internal Revenue Service.
The panel said Trump’s attorneys had not rebutted U.S. District Judge Kathleen Williams’ conclusion that the lawsuit was essentially manufactured to justify a settlement. The decision leaves Williams’ July sanctions and restrictions in place while the case proceeds; it did not resolve the underlying dispute.
Williams found the deal would extinguish outstanding federal tax liability for Trump, many of his family members and their businesses. The settlement also called for the Justice Department to establish a $1.776 billion fund for people who alleged they were victims of political prosecutions.
As part of her sanctions, Williams referred Trump attorney Alejandro Brito to the Florida Bar for possible discipline and barred lawyer Daniel Epstein from practicing in the federal district court in South Florida for one year. She also prohibited the parties from publicly portraying the settlement as a resolution of the claims in the case.
Trump and his lawyers had asked the appeals court to immediately halt those measures, including the limits on public comments about the settlement. Williams, an appointee of former President Barack Obama, is based in Miami. The 11th Circuit is based in Atlanta and hears appeals from federal courts in Florida, Georgia and Alabama.