Trump 1.7B Fraud Hit by Avalanche of Lawsuits

18 May 2026 · 15 min · 4 chapters

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In short

Donald Trump’s attempt to settle a $10B IRS-related lawsuit by trading it for a $1.7B “victim compensation fund” controlled by a Trump-chosen commission, amid claims the case is non-adversarial (“Trump v. Trump”) and jurisdictionally invalid.

Key claims

the settlement would divert taxpayer revenue without congressional authority, violate separation of powers, Article I “purse strings,” and the Administrative Procedure Act; amici analysis suggests no proper adversarial posture.

Notable examples

Judge Williams (Miami) ordered briefs by May 20 and an amici brief from John Gleason, Don Verrilli, and Faith Gay; ABC News reports a scramble to settle before her ruling.

Guests

none named; hosts Michael Popak and the show “Legal AF” / “Midas Touch” are referenced.

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

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Early Reporting on Trump's Lawsuits

1:01 to 1:31

Discussion on Trump's IRS lawsuit and its implications.

“With great everyday prices on 365 brand ground beef for the grill and ice cream for dessert, they have yellow sales signs on ready-to-cook beef or chicken kebabs too.”

Analysis of Trump’s Legal Maneuvering

1:31 to 4:25

Examining Trump's strategy in legal battles over IRS claims.

“And Donald Trump thinks he can outfox and outsmart a Miami federal judge, Judge Williams, about his IRS phony settlement.”

Trump's Fund and Legal Consequences

4:25 to 4:55

Trump's plan to create a compensation fund raises constitutional concerns.

“Donald Trump is trying to steal from the Treasury and from you and me money that belongs to the American taxpayer.”

Implications of Trump's Financial Maneuvers

9:01 to 12:19

Discussing the impact of Trump's proposed financial actions on legality.

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Transcript

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1:30Michael Popok:Sometimes we get to do early reporting on Midas and Legal AF about lawsuits that are about to be filed. And Donald Trump thinks he can outfox and outsmart a Miami federal judge, Judge Williams, about his IRS phony settlement. I said last week that Donald Trump was going to try to keep that$10 billion lawsuit against his own IRS because there was a leaker that leaked his tax returns. He was going to try to keep that case alive to give him an excuse to enter into a settlement and then claim that the lawsuit would be exchanged for the money. And that's OK, right? No. because otherwise it looks like a complete theft of the Treasury by Donald Trump.

2:17Michael Popok:And now we've got new reporting that Donald Trump is going to try to settle the lawsuit before Judge Williams makes her decision as to whether the lawsuit is valid or not. Because Judge Williams is right now considering whether the lawsuit is an invalid bad faith filing because there's no adverse party involved. See, Trump is on one side and Trump is on the other because the other side is the Treasury Department and the Internal Revenue Service. And if he dominates and controls it, then it's called a collusive lawsuit or a cooperative lawsuit where there's no adversary party. Just Trump v. Trump, right?

2:57Michael Popok:And not a divorce. And so Judge Williams basically said, I don't think I have jurisdiction over this. I don't think this lawsuit can be maintained jurisdictionally in a courthouse. And so she asked for help. She told the Department of Justice, the Internal Revenue Service and Donald Trump to file briefs by the 20th of May about whether this is a adversarial case at all. But at the same time, she ordered that three different experts, a former federal judge, John Gleason, a former federal or Department of Justice Solicitor General in Don Verrilli, and Faith Gay, a fantastic trial lawyer out of New York, get together and write a brief, an Amici brief, an amicus brief, a friend of the court brief to guide Judge Williams about whether there was an adversarial procedure.

3:53Michael Popok:when Trump sues his own controlled and dominated agency. And that brief just came in in the last 24 hours. And while it didn't say that the suit was in bad faith filed, it gave the judge the tools to make that decision. And now there's a mad scramble reported by ABC News to settle the case, settle an invalid case before Judge Williams can rule on Michael Popak. You're on Legal AF and Midas Touch. Let's get to the bottom of it all. Donald Trump is trying to steal from the Treasury and from you and me money that belongs to the American taxpayer. Now he's saying he's going to trade his$10 billion phony claim for a$1.7 billion victim compensation fund administered by a commission of his own choosing that he controls, handing out money that's not his money that the IRS should be remitting to the Treasury of the United States.

4:54Michael Popok:It's our money paid in revenue collection now being diverted, money laundered, misappropriated over to a commission and controlled by Donald Trump to hand out to his cronies and allies, including a 1 ,200 or more Jan 6th insurrectionists. Does that get your blood boiling? Well, let me talk to you about the lawsuits that are going to be spawned from this too smart by half approach. Because if you think it sounds like it's unconstitutional, it is. If you think it sounds like a violation of the Administrative Procedures Act, it is. If you think it sounds like it's ultra varies outside the power and control and authority of the president, it is.

5:36Michael Popok:And so he can make the announcement that he's making the settlement. He can try to argue that Judge Williams doesn't have to worry about her jurisdiction any longer because they have divested her of jurisdiction by settling the case, Trump v. IRS, Trump v. Trump. Although put a pin in that, I'm not sure Judge Williams is quite done. They were obviously scared by the analysis of the Amici brief, which said to Judge Williams, I don't think there's a case here. And if there's no case that can be properly traded in a settlement in a consideration exchange, then it's just it's just highway robbery.

6:12Michael Popok:It's just a Brinks robbery. Donald Trump raiding Fort Knox. Now, he says, but don't worry, everybody, I won't be taking anything from the reported settlement terms. Donald J. Trump won't be getting any part of that compensation fund. But he doesn't say anything about the Trump Organization or Eric Trump or Don Jr. or Melania or any of his entities, 17, 20 of them that are listed in the tax returns that a leaker not related to Joe Biden leaked to the ProPublica and the New York Times. And they're saying this is all under the weaponization of the Department of Justice Committee and a commission.

6:48Michael Popok:This is to pay back the American people because Joe Biden weaponized the Department of Justice. In what way? You want to see weaponization of the Department of Justice? You're watching it right now with the capture of the Department of Justice. This is, under Donald Trump as the chief law enforcement officer, the most corrupt Department of Justice in history. Write it down. Seal it in a time capsule. It'll be written that way by history books, I assure you, along with the FBI, along with the White House Counsel's office. And the leadership of the Department of Justice should be ashamed of themselves for being complicit in the destruction or attempted destruction of the rule of law and the degradation of the Department of Justice.

7:31Michael Popok:So there's going to be lawsuits coming, people. I hear them. I feel them. I don't know if it's Democracy Forward. I don't know if it's American Civil Liberties Union. I don't know if it's the Attorney's General. I don't know if it's Democracy Docket or Norm Eisen, but there are going to be lawsuits very soon, as soon as the settlement is announced, if not before, in order to argue that this is a violation of the Constitution, that Donald Trump and or no president as the executive branch has the power to create a commission to distribute money that they don't, that doesn't belong to them. I realized my morning routine was basically just survival mode.

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8:51Michael Popok:Right now, our listeners get an exclusive deal up to 43 % off starter kits, plus free shipping and a free rechargeable frother when you use code LEGALAF. That's right, up to 43 % off with code LEGALAF at M-U-D-W-T-R.com. And after the purchase, they'll ask you how you found them. Please show your support and let them know we sent you. Only Congress controls the purse strings and you can't divert money without congressional authority from the Treasury to your controlled piggy bank slush fund to be used to compensate MAGA and no one else. and so you're going to see a suit that says that this violates article two of the constitution it's not a power enumerated for the presidency that it violates the separation of powers and therefore article one congress controls the purse strings that it violates the administrative procedures act because it's not being executed logistically the way the apa says it should be that it violates ultra varies it violates the powers of the presidency because it's outside their powers and to stop it.

10:06Michael Popok:And that's going to tie up this victim compensation fund up in knots as Donald Trump folds again, says, no, I won't go for the 10 billion. I'll drop it down to 1.7 billion and only my family will dip their beaks into it. No, that's where the lawsuits come in. Now, what will happen with Judge Williams, who I know well in Miami, I practice in front of her for a number of years. She's a phenomenal judge. She was the federal public defender for decades before she became a federal judge. I don't think she's done. I think she thinks she's been used by the Trump administration to create the appearance of a phony lawsuit for a phony transaction that she now no longer has any role in.

10:52Michael Popok:But she can hold the lawyers accountable, including those from the Internal Revenue Service who signed the pleadings. She can hold the Internal Revenue Service accountable and the parties because she's been had or attempted to be had by the Trump administration. And federal judges, I'll tell you one thing I've learned in 35 years of practicing in front of them, they don't like to be used. They don't like to be a pawn in somebody else's conspiracy. So look for Judge Williams to be calling a status conference right quick as soon as the settlement is announced. And they attempt to dismiss the case.

11:27Michael Popok:And she's not going to sign that order of dismissal until she has her conference. And she does her fact finding about what just happened and what she just watched. And we encourage you to do that here on Midas Touch and on Legal AF. So in the meantime, we're going to follow this fast moving story closely. Come over to Legal AF YouTube channel. We just had another click of the odometer. We're now up to 1 ,120 ,000 subscribers on our way to 1.2 million in the month of May. If you think you're a subscriber, you're probably not. I don't think you are. We get 40 million views a month of our work. We have 1 million people who have subscribed for free.

12:09Michael Popok:Do the math. Help us out. Hit the free subscribe button there. Come over to Legal AF Substack and hit the subscribe and paid button and become a supporting member of Legal AF. Until my next report, I'm Michael Popak.

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From the publisher

New lawsuits will soon be filed against Trump’s efforts to coerce his own IRS that he alone controls to fork over $1.7 billion dollars of tax payer dollars to fund a slush fund he controls to pay to his Trump entities and Jan6 and other MAGA defendants, in return for dropping his manufactured “suit” agains the IRS. But Popok explains that Judge Williams in Miami Federal Court who just received briefing indicating that the suit was a fraud to begin with, may have a thing or two to say about any attempt to dismiss it or settle it, as public interest groups ready lawsuits to stop the money laundering!

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