35 Former Judges Call Trump's $1.776 Billion IRS Deal a 'Fraud on the Court'

May 27, 2026

Thirty-five former federal judges, including renowned conservative J. Michael Luttig, filed a motion in federal court in Florida on May 27, 2026, asking Judge Kathleen Williams to reopen Donald Trump's $10 billion lawsuit against the IRS and investigate a secret $1.776 billion settlement. The filing states four words in plain English: "This court was deceived."

The lawsuit, filed January 29, 2026, alleged that former IRS contractor Charles Littlejohn illegally leaked Trump's tax returns to media outlets. Trump's lawyers voluntarily dismissed it without disclosing any settlement terms. Days later, the Justice Department announced the creation of an "Anti-Weaponization Fund" receiving $1.776 billion from the federal judgment fund, controlled by a commission the president himself appoints.

The Scheme: A Lawsuit Used as a Fraudulent Vehicle

The former judges argue the case "is itself a fraud on the court." Trump was simultaneously the plaintiff suing the IRS and, as president, the head of the executive branch that controls the IRS. He sued himself, then secretly settled with himself, and directed $1.776 billion in taxpayer money to a fund his allies control.

The judges describe it as a "collusive settlement" in which the parties "used this lawsuit as a means to allow a 'commission' controlled by the President to dole out $1.776 billion in taxpayer dollars without constitutional or congressional authority." No court approved the settlement. No judge reviewed the terms. The dismissal notice made no mention of any settlement at all.

Bloomberg reported that the former judges called it "unprecedentedly fraudulent," a phrase that covers a lot of ground when you consider how many frauds this administration has already committed.

"The parties used this lawsuit as a means to allow a 'commission' controlled by the President to dole out $1.776 billion in taxpayer dollars without constitutional or congressional authority." — Motion filed by 35 former federal judges, S.D. Florida, May 27, 2026

Who Signed. What They Want.

Luttig is not a Democratic operative. He was appointed to the Fourth Circuit Court of Appeals by George H.W. Bush and was one of the two judges on the short list for the Supreme Court under George W. Bush. He testified before the House January 6 Select Committee that Trump's pressure campaign on Mike Pence was "a clear and present danger to American democracy." He has never been easy to dismiss as partisan.

The 35 former judges are asking Judge Williams to: void the voluntary dismissal, reopen the case, and investigate whether the parties manipulated the judicial process to funnel taxpayer money and shield Trump and his affiliated entities from future federal liability. Courthouse News reported that the judges argue there is "clear and convincing evidence" that fraud on the court occurred.

What makes this structurally different from ordinary corruption is the mechanism. Trump did not need Congress to appropriate $1.776 billion. He used a lawsuit, a voluntary dismissal, and a DOJ announcement to move federal funds to a fund his appointees control, entirely outside the appropriations process. CNBC reported that diplomats and legal experts are flagging the arrangement as a constitutional violation of the separation of powers.

Sources

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