Federal Attorney Resists Demands to Charge NY AG James

A veteran federal prosecutor in Virginia has informed her colleagues that she lacks confidence there is sufficient evidence to pursue criminal mortgage fraud charges against New York Attorney General Letitia James, according to a source knowledgeable about the situation.

The prosecutor, Elizabeth Yusi, who oversees major criminal cases in the Norfolk office for the U.S. Attorney for the Eastern District of Virginia, plans to shortly present her conclusion to Lindsey Halligan, a supporter of Trump who was appointed as the U.S. Attorney for the Eastern District of Virginia last month.

The Justice Department declined to comment on the matter. The U.S. Attorney’s Office for the Eastern District of Virginia also ignored a request for comment.

Significant Clash Between Department of Justice and Former President

This case signals another major confrontation between the Justice Department and Trump, who has in the past fired attorneys who declined to prosecute his opponents. Halligan, who has no prosecutorial experience, was named to the role after requests by Trump after her preceding attorney concluded there was no probable cause to file criminal charges against James Comey, the former FBI director.

Trump has openly demanded the U.S. Attorney General to take legal action against James, who spearheaded a civil fraud case against the former president that resulted in a massive fine, though the judgment was later overturned by a New York state appellate court.

Loan Fraud Claims and Probe

William Pulte, the Federal Housing Finance Agency head and a dedicated Trump ally, made a criminal referral against James to the Justice Department in April, claiming she may have committed mortgage fraud. Pulte cited mortgage documents pertaining to a 2023 Norfolk, Virginia, home that James supported the acquisition of for her niece, in which James appeared to indicate on a document that she meant to reside in the home as her primary residence. James was serving as the Attorney General of New York at the time.

Prosecutors convened a grand jury in May to look into the matter but faced difficulties building a case against James, despite demands from Trump allies. Emails from the time of the home purchase and other mortgage documents demonstrate James explicitly stating that she did not mean for the home to be her primary residence. This evidence complicates efforts for prosecutors to prove that James deliberately falsified on the mortgage documents.

Ongoing Turnover in Justice Unit

Multiple prosecutors in the Eastern District of Virginia have faced termination or left their posts in recent weeks as Trump has ramped up pressure on the office to bring charges against Comey and James.

Erik Siebert, Halligan’s predecessor, stepped down on September 19 after facing pressure from Trump to file charges. Maya Song, a top deputy to Siebert, was also dismissed in late September. Michael Ben’Ary, a prominent national security prosecutor in the office, was similarly dismissed last week after inaccurate accusations from a pro-Trump media personality.

“The leadership is more concerned with punishing the President’s perceived enemies than they are with protecting our national security,” he stated in his departure note to colleagues.

“Justice for Americans affected by our enemies should not be contingent on what someone in the Department of Justice encounters in their digital platforms that day.”