An Obama-appointed federal judge in Florida rebuked President Donald Trump’s legal team Monday, finding his $10 billion lawsuit against the IRS was brought for an “improper purpose” to legitimize a controversial Justice Department settlement.

U.S. District Judge Kathleen Williams of the Southern District of Florida found the case was brought for an “improper purpose,” rebuked Trump’s legal team and referred attorney Alejandro Brito to the Florida Bar for possible disciplinary action.

“The Parties here are not private actors to a mine-run dispute, recounting their proficiency in the art of the deal they negotiated,” wrote Williams. “Lead Plaintiff and Defendants are public servants—the pinnacle of the Executive Branch—sworn to uphold the law, faithfully perform the duties of their office, and protect the interests of the American public.”

TRUMP DOUBLES DOWN ON $1.8 BILLION ‘SLUSH FUND’ THAT KILLED HIS AGENDA, SPURRED REPUBLICAN REBELLION

Trump, his two eldest sons and the Trump Organization sued the IRS and Treasury Department seeking at least $10 billion in damages for failing to protect his confidential tax information after IRS contractor Charles Littlejohn leaked his records in 2019. Littlejohn pleaded guilty to one count of unauthorized disclosure of tax return and return information.

Williams found that Trump was using the lawsuit to advance his own interests while controlling the federal agency he had sued.

She was appointed by Obama in 2011 and previously served as a Federal Public Defender for the Southern District of Florida.

GOP LEVERAGES ICE FUNDING PACKAGE TO MAKE TRUMP’S CONTROVERSIAL $2B FUND ‘NEVER EXIST’

Trump envisioned creating an “Anti-Weaponization Fund” from the lawsuit settlement to compensate alleged victims of government “lawfare” as well as to halt IRS audits of his finances.

The fund drew an enormous amount of scrutiny from Democrats, calling it a “slush fund” to personally benefit Trump and his allies. The fund was later dropped after political backlash, with DOJ Acting Attorney General moving to walk back that portion of the proposed settlement.

TRUMP SAYS HE WILL NOMINATE ACTING AG TODD BLANCHE TO PERMANENTLY LEAD JUSTICE DEPARTMENT

The lawsuit puts the controversial anti-weaponization fund back under the microscope as confirmation hearings begin Wednesday for Blanche’s nomination as attorney general.

Williams called out Blanche in her ruling, saying that he appeared to be speaking for both sides of the lawsuit. 

“The Court is extremely troubled by the testimony given by Acting Attorney General Blanche on May 19, 2026. In response to why the ‘settlement agreement’ had not been submitted to this Court for review, he stated that ‘there is no judge’ because the case had been dismissed and, therefore, there was “no mechanism” for reviewing the agreement,” wrote Williams.

“While temporally accurate, this answer is, at best, misleading and, at worst, disingenuous,” she added.

The White House referred Fox News Digital to Trump’s personal attorneys for comment. Fox News Digital reached out to attorney Alejandro Brito and DOJ for comment.