🔗 Share this article

A senior federal prosecutor in Virginia has informed her colleagues that she does not believe there is probable cause to pursue mortgage fraud charges against New York Attorney General Letitia James, per a source knowledgeable about the situation.

The prosecutor, Elizabeth Yusi, who supervises high-profile investigations in the Norfolk office for the U.S. Attorney for the Eastern District of Virginia, plans to shortly present her finding to Lindsey Halligan, a supporter of Trump who was appointed 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 did not respond to a request for comment.

High-Profile Dispute Between DOJ and Trump

This case signals another major confrontation between the Justice Department and Trump, who has in the past fired attorneys who refused to take action against his political enemies. Halligan, who possesses no prosecutorial experience, was appointed to the role following pressure from Trump after her predecessor concluded there was no legal basis to file criminal charges against James Comey, the ex- FBI director.

Trump has openly demanded the U.S. Attorney General to take legal action against James, who headed a civil fraud case against the former president that resulted in a $500 million fine, though the ruling was afterwards overturned by a New York state appellate court.

Housing Fraud Accusations and Inquiry

William Pulte, the Federal Housing Finance Agency head and a strong Trump ally, made a allegation against James to the Justice Department in April, alleging she may have committed mortgage fraud. Pulte pointed to mortgage documents associated with a 2023 Norfolk, Virginia, home that James supported the acquisition of for her niece, in which James suggested on a document that she meant to reside in the home as her principal dwelling. James was serving as the Attorney General of New York at the time.

Prosecutors formed a grand jury in May to investigate the matter but struggled building a case against James, even with pressure from Trump allies. Messages from the time of the home purchase and further mortgage documents show James explicitly stating that she did not intend 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.

Ongoing Turnover in Justice Division

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

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

“The leadership is focused with penalizing the President’s opponents than they are with safeguarding our national security,” he wrote in his farewell letter to colleagues.

“Justice for Americans harmed by our enemies should not be contingent on what someone in the Department of Justice reads in their online content that day.”