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A senior federal prosecutor in Virginia has informed her colleagues that she finds no basis there is probable cause to pursue mortgage fraud charges against New York Attorney General Letitia James, as reported by a source familiar with the situation.

The prosecutor, Elizabeth Yusi, who manages significant prosecutions in the Norfolk office for the U.S. Attorney for the Eastern District of Virginia, intends to soon present her assessment to Lindsey Halligan, a Trump ally who was placed as the U.S. Attorney for the Eastern District of Virginia recently.

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.

High-Profile Dispute Between DOJ and Trump

This case represents another high-profile confrontation between the Justice Department and Trump, who has in the past removed attorneys who resisted to target 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 probable cause to file criminal charges against James Comey, the ex- FBI director.

Trump has explicitly demanded the U.S. Attorney General to charge James, who headed a civil fraud case against the ex-president that resulted in a massive fine, though the ruling was afterwards overturned by a New York state appellate court.

Loan Fraud Claims and Probe

William Pulte, the Federal Housing Finance Agency head and a strong Trump ally, made a legal complaint against James to the Justice Department in April, alleging she may have committed mortgage fraud. Pulte referenced mortgage documents related to a 2023 Norfolk, Virginia, home that James supported the acquisition of for her niece, in which James suggested on a document that she planned to occupy the home as her main home. 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 struggled building a case against James, notwithstanding demands from Trump allies. Emails from the time of the home purchase and additional mortgage documents reveal James directly noting that she did not mean for the home to be her primary residence. This evidence complicates efforts for prosecutors to prove that James intentionally misled on the mortgage documents.

Recent Turnover in Legal Unit

Multiple prosecutors in the Eastern District of Virginia have either been fired or resigned in recent weeks as Trump has ramped up 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 top national security prosecutor in the office, was similarly dismissed last week after unfounded accusations from a pro-Trump media personality.

“The leadership is preoccupied with punishing the President’s political foes than they are with protecting our national security,” he wrote 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 social media feed that day.”