An experienced federal prosecutor in Virginia has told her colleagues that she does not believe there is probable cause to pursue mortgage fraud charges against New York Attorney General Letitia James, according to a source familiar with 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, will shortly present her finding to Lindsey Halligan, a Trump ally who was installed as the U.S. Attorney for the Eastern District of Virginia recently.
The Justice Department did not respond on the matter. The U.S. Attorney’s Office for the Eastern District of Virginia also ignored a request for comment.
Significant Confrontation Between DOJ and Trump
This case marks another major confrontation between the Justice Department and Trump, who has in the past fired attorneys who declined to take action against his critics. Halligan, who lacks any prosecutorial experience, was selected to the role at the urging of Trump after her predecessor concluded there was insufficient evidence to file criminal charges against James Comey, the former FBI director.
Trump has openly called for the U.S. Attorney General to prosecute James, who led a civil fraud case against the ex-president that resulted in a massive fine, though the decision was subsequently overturned by a New York state appellate court.
Housing Fraud Claims and Investigation
William Pulte, the Federal Housing Finance Agency head and a strong Trump ally, made a allegation against James to the Justice Department in April, claiming she may have committed mortgage fraud. Pulte cited mortgage documents associated with a 2023 Norfolk, Virginia, home that James supported the acquisition of for her niece, in which James seemed to state on a document that she meant to reside in the home as her principal dwelling. James was holding the position of the Attorney General of New York at the time.
Prosecutors formed a grand jury in May to look into the matter but faced difficulties building a case against James, despite pressure from Trump allies. Electronic correspondence from the time of the home purchase and further mortgage documents show James directly noting that she did not plan for the home to be her primary residence. This evidence makes it difficult for prosecutors to prove that James intentionally misled on the mortgage documents.
Recent Turnover in Prosecutorial Office
Multiple prosecutors in the Eastern District of Virginia have faced termination or stepped down in recent weeks as Trump has escalated pressure on the office to bring charges against Comey and James.
Erik Siebert, Halligan’s predecessor, resigned on September 19 after encountering pressure from Trump to file charges. Maya Song, a top deputy to Siebert, was also dismissed in late September. Michael Ben’Ary, a leading national security prosecutor in the office, was also fired last week after inaccurate accusations from a pro-Trump media personality.
“The leadership is focused with targeting the President’s political foes than they are with protecting our national security,” he stated in his final message to colleagues.
“Justice for Americans harmed by our enemies should not be subject to what someone in the Department of Justice reads in their online content that day.”
