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A veteran federal prosecutor in Virginia has advised her colleagues that she does not believe there is legal grounds to pursue fraudulent mortgage charges against New York Attorney General Letitia James, as reported by 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, will soon present her assessment to Lindsey Halligan, a supporter of Trump who was appointed as the U.S. Attorney for the Eastern District of Virginia in the previous month.

The Justice Department offered no statement on the matter. The U.S. Attorney’s Office for the Eastern District of Virginia also ignored a request for comment.

Significant Dispute Between Justice Department and Trump

This case represents another high-profile confrontation between the Justice Department and Trump, who has in the past removed attorneys who declined to take action against his opponents. Halligan, who lacks any prosecutorial experience, was selected to the role at the urging of Trump after her preceding attorney concluded there was no legal basis to file criminal charges against James Comey, the former FBI director.

Trump has openly urged the U.S. Attorney General to prosecute James, who spearheaded a civil fraud case against the former president that resulted in a $500 million fine, though the ruling was subsequently overturned by a New York state appellate court.

Loan Fraud Claims and Inquiry

William Pulte, the Federal Housing Finance Agency head and a dedicated Trump ally, made a allegation against James to the Justice Department in April, claiming she may have committed mortgage fraud. Pulte pointed to mortgage documents related to 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 intended to use the home as her main home. James was serving as the Attorney General of New York at the time.

Prosecutors convened a grand jury in May to examine the matter but struggled building a case against James, notwithstanding pressure from Trump allies. Electronic correspondence from the time of the home purchase and additional mortgage documents show James clearly indicating that she did not plan for the home to be her primary residence. This evidence complicates efforts for prosecutors to prove that James knowingly lied on the mortgage documents.

Recent Turnover in Legal Unit

Multiple prosecutors in the Eastern District of Virginia have been dismissed or stepped down 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 encountering pressure from Trump to file charges. Maya Song, a senior deputy to Siebert, was also terminated in late September. Michael Ben’Ary, a prominent national security prosecutor in the office, was similarly dismissed last week after unfounded accusations from a pro-Trump media personality.

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

“Justice for Americans killed and injured by our enemies should not be dependent on what someone in the Department of Justice reads in their digital platforms that day.”