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An experienced federal prosecutor in Virginia has told her colleagues that she finds no basis 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 major criminal cases in the Norfolk office for the U.S. Attorney for the Eastern District of Virginia, plans to imminently present her conclusion 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 did not respond on the matter. The U.S. Attorney’s Office for the Eastern District of Virginia also ignored a request for comment.

Major Dispute Between Department of Justice and Former President

This case marks another major confrontation between the Justice Department and Trump, who has earlier dismissed attorneys who refused to prosecute his political enemies. Halligan, who possesses no prosecutorial experience, was appointed to the role at the urging of Trump after her former office holder concluded there was no probable cause to file criminal charges against James Comey, the ex- FBI director.

Trump has publicly urged the U.S. Attorney General to prosecute James, who headed a civil fraud case against the ex-president that resulted in a half-billion dollar fine, though the decision 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 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 helped purchase for her niece, in which James appeared to indicate on a document that she planned to occupy 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 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 further mortgage documents demonstrate 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 deliberately falsified on the mortgage documents.

Ongoing Shake-Up in Prosecutorial Division

Multiple prosecutors in the Eastern District of Virginia have either been fired 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, resigned on September 19 after facing pressure from Trump to file charges. Maya Song, a top deputy to Siebert, was also fired 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 focused with penalizing the President’s political foes than they are with defending our national security,” he expressed in his departure note to colleagues.

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