A top federal prosecutor in Virginia will not seeking criminal charges against New York Attorney General Letitia James for alleged mortgage fraud, resisting pressure from President Trump and leadership at the Justice Department.
Elizabeth Yusi, who oversees major criminal prosecutions in the Norfolk office of the Eastern District of Virginia, reportedly told coworkers she doesn’t see probable cause to believe James engaged in mortgage fraud. Yusi plans to present her conclusion to interim U.S. Attorney Lindsey Halligan in the coming weeks.
The decision comes after a five-month investigation into allegations that James falsified documents to secure favorable loan terms on properties, including a Virginia home where her niece lives. Trump has publicly called for James to be prosecuted, labeling her “SCUM” on Truth Social and accusing her of leading a politically motivated witch hunt against him.
On Sept. 20, Trump called on Attorney General Pam Bondi to prosecute James, former FBI Director James Comey, and Sen. Adam Schiff, claiming they were “all guilty as hell.” He pointed to his two impeachments and his multiple baseless indictments and wrote that “JUSTICE MUST BE SERVED, NOW!!!”
The mortgage fraud allegations stem from a criminal referral issued in April by Bill Pulte, whom Trump appointed to head the Federal Housing Finance Agency.
Pulte accused James of falsifying records to claim she resided in the Virginia home to get better loan terms, misrepresenting the number of rooms in her Brooklyn home to meet requirements for a government-backed loan, and falsely claiming to be her father’s wife on a mortgage application in the 1990s.
James’s attorney, Abbe Lowell, denied the allegations and said James had explicitly stated the home was not her primary residence on the loan application. Lowell claimed that a power-of-attorney form had mistakenly listed the house as a primary residence, but that James herself checked “no” on the loan application when asked if the house was her primary home.
Questions remain about the thoroughness of the investigation and whether the same standards applied to Trump allies are being applied to his adversaries.
James successfully sued Trump and his real estate company for what she said was a series of fraudulent business practices, securing a 2024 civil fraud verdict and a nearly $500 million penalty from a New York judge. The verdict was upheld on appeal, but the monetary penalty was thrown out in August after a court deemed it excessive.
Now, evidence exists that James may have committed similar real estate documentation issues to those she alleged Trump engaged in during her case against him.
Yusi’s refusal to pursue charges follows the September resignation of Erik Siebert, the previous U.S. attorney for the Eastern District of Virginia, who also resisted seeking fraud charges against James and other charges against Comey. Siebert resigned Sept. 19 after learning he would lose his job.
Last week, the Justice Department fired high-ranking prosecutor Maya Song after top national security prosecutor Michael Ben’Ary was removed from his position. Ben’Ary wrote in a letter to colleagues that “In recent months, the political leadership of the Department have violated these principles, jeopardizing our national security and making American citizens less safe.”
James has been a longtime antagonist of Trump. She campaigned on investigating Trump before taking office as New York attorney general and has filed multiple lawsuits against his administration.
Critics have pointed out the contrast with how Trump allies were treated under the Biden administration. Some of the cases pursued by these career prosecutors targeting those in Trump’s orbit were arguably built on weaker evidence than what exists against James.
Asked about the issue at the White House in September, Trump said “It looks to me like she’s really guilty of something, but I really don’t know.