U.S. prosecutors pursue new criminal probe into New York AG Letitia James over financial transactions
(CBS NEWS) – Sources from CBS say Federal prosecutors have launched a new criminal investigation into New York Attorney General Letitia James, after a grand jury previously declined to indict her twice on unrelated criminal charges, two sources familiar with the matter told CBS News.
The new probe, which is in its early stages, marks the latest effort by the Justice Department to target one of President Trump’s perceived political enemies, after she pursued a civil fraud case against him while he was out of power.
The latest investigation, which was first reported by the New York Times, centers on financial transactions between James and her long-time hairdresser Iyesata Marsh, the sources said.
A grand jury in the Eastern District of Virginia indicted James last fall over charges that she had defrauded a financial institution in order to secure a better interest rate on a property she purchased in Norfork.
The case was dismissed in November, however, after a federal judge ruled that Lindsey Halligan, the U.S. attorney who solely secured the indictment, was unlawfully appointed.
The Justice Department later tried again and twice failed to secure new indictments in the case against her, and late last year, the department appealed the ruling that disqualified Halligan.
James’ attorney Abbe Lowell has previously accused the Justice Department of vindictive prosecution, saying she was being unlawfully targeted because of Mr. Trump’s animus towards her.
“Clearly frustrated by the string of failures in carrying out President Trump’s political vendetta against Attorney General James, his obedient Justice Department appears to be using its vast resources to try to shake down people based on their association with Ms. James,” Lowell said in a statement to CBS News. “Like their earlier attempts, this attack on Ms. James is doomed to fail. The desperation of those working for Trump is palpable and makes indelible the stain already put on this Justice Department. This abuse of justice must end.”
CBS News could not immediately determine what kinds of potential crimes are being investigated in the latest probe.
Last month, Marsh was indicted in the Western District of Louisiana on charges of bank fraud and aggravated identity theft in connection with a 2019 purchase of a Land Rover.
The New York Times reported that prosecutors are interested in talking to Marsh about past financial transactions involving James or her campaign.
Marsh’s attorney did not immediately respond to a request for comment.
Earlier Thursday, a federal judge in New York disqualified an acting U.S. attorney in the Northern District of New York from handling two additional and separate ongoing investigations into James, ruling that he was not lawfully serving in his position.
Prosecutors in the Northern District of New York are investigating James and her office’s handling of the civil fraud investigation into President Trump and a lawsuit filed by her office against the National Rifle Association and executives there. As part of that investigation, James was subpoenaed in August.
After the subpoenas were issued, James sued to quash them, arguing in court documents that Sarcone was unlawfully appointed, and on Thursday a federal judge quashed the subpoenas.
