AG Blanche’s LEGAL NIGHTMARE CONTINUES as NEW Filing DERAILS IRS Immunity Deal!!

Alrighty, so I want to talk about an amended complaint that was filed in the Eastern District of Virginia towards the end of last week.And it is in a continuing case that is not dead in the water simply because now Attorney General Todd Blanche decided to do that August 2nd, a dead of night posting on X. cesspool that it is, declaring that the slush fund is dead and that the tax immunity provision from Donald Trump's collusive lawsuit, perpetration of fraud upon the court lawsuit against the IRS and the Treasury Department, that that tax immunity is now limited in some way.Look, I have covered extensively here at Katie Fang News and on Sobstack how there is no legally enforceable component to anything that he posted on X. But I didn't want anybody to worry that just because he ends up getting confirmed by the spineless, ball -less cowards that are Senate Republicans, excepting Lisa Murkowski and Susan Collins in this specific instance, that that means that this $1 .776 billion slush fund lives in any way, or that that tax immunity gift, which violates many laws, lives either.This lawsuit I've reported on here, it's the one that was brought by a illegally terminated DOJ prosecutor, by a national abortion organization, and some other plaintiffs in Virginia.Why?Well, because the creation of the slush fund specifically was the basis of the lawsuit.

And the federal judge in that case, you have to love this judge, Judge Leonie Brinkema.And what happened was Judge Brinkema said, Look, I want a sworn under penalties of perjury declaration from Todd Blanche and Stanley Woodward, the number three, who may be elevated to number two.I want a sworn under penalties of perjury declaration that the slavefund is dead.And Judge Brinkema, since June, has been asking for this to happen, and it's never been done.And while this lawsuit's been pending, you know, all of the machinations behind the scenes have been going on concerning Blanche's nomination, etc.

So then Blanche and I'm sure convicted felon Donald Trump, the White House and others were like, oh, well, once we just make this declaration that the slush fund is dead, then everybody can shut the hell up and go away.And it's interesting because even even Todd Blanche in his Twitter post acknowledged the existence of this other litigation.Take a look at this.So this is the first kind of thing that was posted by Todd Blanche on August 2nd, again, 1109 p .m.Eastern, and it says here, For the avoidance of doubt, nothing in this order, which is not an order, is intended to contradict or otherwise be contrary to prior representations by the department.

And then it says here, this order establishes beyond any doubt that there is no fun.And it references, quote, several frivolous lawsuits that have been filed challenging the fun.And at least one court has declined to dismiss those claims as moot.It would be this lawsuit, Andrew Floyd and the other plaintiffs versus the Department of Justice and other defendants.And you can see it there.See Floyd versus Department of Justice.

It lists a couple others.And then, of course, friend and colleague Alison Gill, her lawsuit, right, against the Department of Justice is the last one that's listed.So obviously, these lawsuits, top of mind.

And if you are sincere, credible and legitimate when you say that the slush fund is dead, then it should be a very easy thing, should it not, than to file that sworn declaration stating that it's dead.Still hasn't happened.And so that federal judge, Judge Brinkema, entered a temporary restraining order and then a full restraining order, basically enjoining the slush fund from moving forward in any way, shape, or form.Okay.So fast forward to the very end of last week.An order gets entered by the judge.

And this order is dated August 7th, which was late Friday.And what the judge said was, look, because the Department of Justice says that it doesn't intend to proceed with the original motion to dismiss and will file an amended motion to dismiss, she set a briefing schedule for this lawsuit.Now, why is that happening?Well, because of this amended complaint that you see on your screen right now.And this amended complaint is a The 67 -page amended complaint that was filed, and it's from our friends at Democracy Forward, Skye Perryman, and some amazing litigation team.And this amended complaint added critically some very important people.

and issues.Okay, so if you look at the first page and you look at what we call the style, you see Andrew Floyd's name and you see the other original plaintiffs, Jonathan Caravello, the city of New Haven and the National Abortion Federation and Common Cause.

But now we have a new player in the game, the National Treasury Employees Union.And I'll get into a description of who they are in a second.But in this first amended complaint, the National Treasury Employees Union has become involved concerning the immunity provision.So this is cool, right?Because this means that the original lawsuit that was brought that was attacking the legality and the validity of the slush fund, and again, we're never going to take Todd Blanche's word for it because it has no value.He has no credibility.

so we're not going to take it.And I don't care if his new title is acting, excuse me, is attorney general and no longer acting attorney general.We don't have to believe what he's selling, right?Snake oil salesman doesn't have to be believed.So the original plaintiffs pursuing justice when it came to the slush fund, that continues.But the addition of the union is important here.

And I love, right before the introduction, this quote, power tends to corrupt and absolute power corrupts absolutely, citing to Lord Acton.And then in paragraph two, we see here that this orders or whatever from that illegal settlement agreement that was entered into in that bullshit IRS lawsuit that was brought in Florida, that it purported to create a $1 .776 billion slush fund of American taxpayer dollars that would fund this anti -weaponization fund, which we all know meant that the insurrectionists would just get money not only to say thank you for all the hard work you've done so far, hey, here's some money to be able to do some more insurrection work, and also create created tax immunity from any civil and criminal liabilities for Trump, his family members, his business entities, and all others that were deemed to be, quote, related or affiliated to them, including any tax liability exposure being poof, gone, including any type of audit activity based on conduct allegedly before May 18th, 2026.Okay, now, This immunity order we're going to focus on right now, because that's the new language in this amended complaint.And it says here in paragraph six, the president of the United States and his family are obligated to pay taxes owed, just like every other taxpayer in America.And per the IRS's own tax policies, the IRS is required to audit the president each year thathe is in office.

But this immunity order would prevent, prohibit, and block the IRS from being able to audit any of Trump's tax returns, including pursuing any underpaid taxes, which I don't have to tell you.Allegations of financial fraud are legion against convicted felon Donald Trump.In fact, we call him convicted felon Donald Trump because he was convicted of what?34 felonies for the commission of falsification of business records.Fraud.Under this immunity order as it is being defined and described in this amended complaint, career IRS employees are forced to terminate ongoing audits of Trump, his businesses, and his family members, giving him a lucrative and unconstitutional emolument.

In other words, he gets a gift, but it's unconstitutional.It violates what?The emoluments clause.This would be unprecedented under any circumstance.It's even more remarkable considering the fact that Trump profited $2 .2 billion since he returned to the White House in January of 2025.Paragraph 7 is also important.

This immunity order, as it's being called, this thing from Blanche, violates a law.Federal Statute 26 U .S.Code Section 7217, which prohibits the president from asking the IRS either directly or indirectly to end any audits that are being conducted of a taxpayer, including himself.Section 7217, you want to know the origins of it?Fascinating, of course, goes back to Nixon.

Nixon weaponized the IRS to target his political enemies and to help his supporters.So Congress exercising Article One powers that this current Congress, in terms of Republicans, seems to have decided that they'd rather be impotent and not do.But back then, Congress put in placeprotections to stop and restrict the president from being able to access people's tax information and to stop future presidents and their cabinets from carrying out partisan politics through the auspices of tax administration.But this immunity order that came from that illegal lawsuit against his own Treasury Department and IRS?It violates protections and overrides IRS requirements in place for more than 50 years that Trump's tax returns be audited by career IRS employees each year that he's in office.

So remember how I mentioned there's a brand new player in this game?The newest plaintiff is the National Treasury Employees Union, the NTEU.That union represents career IRS auditors, as well as other federal government employees by the way, who as a result of this immunity order will be given unlawful directions and orders to terminate particular taxpayers audits.Trump family members, business entities, in violation of section 7217.It will conscript.You got to love that verb, right?

It's going to pretty much put into forced labor career IRS employees to provide the president, his relatives and affiliates with a lucrative benefit that's not available to any other American.Agreeing to do this will cause members of this union to violate their own oath of office and subject them to the risk of criminal liability.Because if you refuse to do it, then inevitably members of this union may face the risk of what?Retaliatory conduct, including but not limited to termination from employment.It's important, right?So as I noted, this amended complaint alleges violations of the Emoluments Clause.

It also alleges violations of the Administrative Procedures Act.Again, the APA is something you're very familiar with here.And in the end, what itasked the court to do is to continue to do what Judge Brinkema has been doing, which is to enjoin or to block the government from being able to move forward with any type of slush fund.And for those of you out there that are like, yeah, but why is that necessary?Because Blanche is set Remember what we said, we don't take Blanche's word for what it is.

And the thing is, we don't reward convicted felon Donald Trump for installing his personal lawyer, Todd Blanche, as the attorney general of the United States, do we?

We backstop.

We create any and all obstacles.to be able to block unconstitutional and illegal conduct.And that means that we pursue to the very end any and all recourse that is available in the law pursuant to the rule of law.And that means that this lawsuit keeps damn going forward, especially when you have a judge who's receptive to the demands that are being made by the plaintiffs.Let's go to the prayer for relief.They want this anti weaponization fund to be declared to be unlawful and that you can't use it.

It's got to be set aside.You can't use it in any way.Okay.It also wants the immunity order.dealing with the tax issues to be declared to have violated the Constitution, the Administrative Procedure Act, and to be ultra viris, meaning it's outside the ability or the power for them to be able to do this, to set it aside, saying that the defendants are no longer able to do anything and cannot move forward and enforce this immunity order in any way.It also wants to make sure that any of the employees and agents and people that work for the defendants, including the Department of Justice, that they don't do anything to give effect to that tax immunity order and that they have to give status reports and to award the plaintiffs their costs, reasonable attorney's fees, and for any other relief that the court deems just and proper.

Again, a very important lawsuit because you can't just abatethis litigation simply because Blanche says, trust me, bro.And trust me, I would know.We don't do that.We have to keep on going and we have to always be minding the till because when you look away for a second, these assholes will steal it all, literally in this instance.Now, you may be saying, well, what's going on with that Florida case?

I'm glad you asked.So in Florida, The latest is this.An order entered on August 5th of last week from Judge Kathleen Williams.

Now, you'll recall she entered that damning, scathing 58, 50 -something page order stating that this was collusion and the perpetration of fraud in the court.

She referred Blanche and Woodward and some other lawyers to the bar, including Alex Burrito, somebody I talk about a lot here.And, of course, Trump appealed that decision.In the meantime, Trump tried to do an expedited stay of the sanctions component of that order, the referrals to the bar, the payment of the attorney's fees, etc.Judge Williams, August 5th, enters this order.The matter before the court is the plaintiff's expedited motion to stay the sanctions order and related proceedings pending appeal.Upon review of the motion, the record, and the applicable law, the court finds that the plaintiffs have not shown good cause for an expedited ruling under Southern District of Florida Local Rule 7 .1.

Accordingly, it is order in a judge that the plaintiff's request for an expedited ruling is denied, and the court appointed Amici, friend of the court, file a response to the defendant's motion on or before August 14th, 2026.

So if you're asking me, well, which motion are they having to file an expedited response to?I'm going to pull it up for you.That is Trump's expedited motion to stay the sanctions order and related proceedings pending appeal.So

not stopping.

The sanctions component against Blanche Woodward and the lawyers, Brito and another guy, that keeps on moving forward.And because Nobody was responding on behalf of the defendants, meaning nobody was filing a response to what the judge was ordering on behalf of the Treasury Department, the IRS, which, by the way, just shows the collusion, right?Just shows the joke that this case was, because no one ever filed a notice of appearance on behalf of the Treasury Department and the IRS ever in this case.Because why?Who would do it?Is it the DOJ?

But that DOJ is working with Blanche and Woodward and others to be able to help.Donald Trump was on the other side of the V, meaning they're on the Other side is the litigation, so there's your collusion in fact and in law.

So the judge had appointed Amici, friends of the court.So what she's saying is, hey, friends of the court, those that I appointed, you're going to file a response to their expedited motion to stay the sanctions order on or before August 14th, which is this coming Friday.There is a lot of activity this week.There's also my upcoming hearing on the 13th at 1 p .m.in my lawsuit against now Attorney General Todd Blanch.

Doesn't change anything, folks, just because he's the Attorney General.I just have to drop the adjective acting now.bitterly, but I do.And so we're going to also continue to watch what happens here.There will be an amended motion to dismiss filed pursuant to Judge Brinkema's order no later than the close of business on Friday, August 21st.Andrew Floyd, the union and the other plaintiffs filed their response in opposition no later than September 4th.

And the Department of Justice can file its reply no later than September 11th.And there was a hearing that was scheduled for this Friday dealing with a discovery that had already begun between the parties in this lawsuit in Virginia.That hearing is moved toFriday, September 18, according to Judge Brinkema.So a lot of activity.The reason why I wanted to talk about this amendment complaint is I wanted to say, look, we fight our battles one by one.

But they are a part of the bigger picture war that we are waging.And because of that, we have to not take our eye off the ball.We have to understand that each and every battle won or lost is one from which we learn.

And we've seen that there are critical issues that still remain even after the loss, which I call a loss, of Blanche becoming the Attorney General of the United States.

And so we will stay the course.We will continue to be mad, be outraged, and to demand accountability.And this is a continuing move to demand accountability in this lawsuit.So again, hats off to Sky Perryman at Democracy Forward.

Great friends, great colleagues, great co -fighters in the pro -democracy space.I'm off to rattle some more cages.Katie Fang here.We launched the Katie Fang News Channel in partnership with the Midas Touch Network so we could bring you the latest in legal and political news.Straight, no chaser.So if you're a fellow truth teller, hit that subscribe button and share the word about this channel so we can build a high information America together.