New York Attorney General Letitia James is in big legal trouble… again.
Federal prosecutors have opened a new criminal investigation into James, this time examining shady financial transactions between James and her longtime hairdresser.
The probe marks the latest Justice Department investigations into one of President Donald Trump’s most vocal critics.
A grand jury previously indict James on mortgage fraud charges, but it was thrown out by an Clinton-appointed judge.
The latest investigation centers on transactions between James and Brooklyn hairdresser Iyesata Marsh, who has known the attorney general for years. Prosecutors are interested in talking to Marsh about past financial dealings involving James and campaign contributions.
Marsh was indicted last month in the U.S. District Court for the Western District of Louisiana on charges of bank fraud and aggravated identity theft in connection with the 2019 purchase of a Land Rover. Court documents accuse Marsh and her nephew of using the identity and personal information of an unidentified Ohio woman to secure a $48,000 bank loan for the vehicle. Both have pleaded not guilty.
James’ 2018 campaign paid Marsh $36,000 that year, according to the Wall Street Journal. Campaign officials said $22,000 was rent for using Marsh’s Brooklyn studio as a temporary campaign office for four months, while the remainder was for event planning work at a political event.
It is unclear whether Marsh is cooperating with the investigation. James’ attorney, Abbe Lowell, accused the Justice Department of politically motivated harassment.
“The 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. This abuse of justice must end.”
The new probe comes after a federal grand jury in the Eastern District of Virginia indicted James in October on bank fraud and false statements charges related to a 2020 home purchase in Norfolk, Virginia. Prosecutors alleged she misrepresented the property as a second home rather than an investment property to secure a better interest rate, potentially saving $19,000 over the life of the loan.
U.S. District Judge Cameron McGowan Currie, appointed by former President Bill Clinton in 1994, later dismissed that indictment in after ruling that Lindsey Halligan, the U.S. attorney who secured the charges, was unlawfully appointed to her position.
Halligan, a former White House aide and Trump lawyer, was appointed as interim U.S. attorney after the Justice Department pushed out Erik Siebert, a veteran prosecutor who resigned in September.
The Justice Department attempted to revive the mortgage fraud case twice in December. A grand jury in Norfolk declined to indict James on December 4, and a second grand jury in Alexandria rejected charges on December 11.