A Justice Department memo reportedly casts doubt on the fraud allegations against New York Attorney General Letitia James, suggesting weak evidence and unclear legal grounds for her indictment.
Federal prosecutors who investigated New York Attorney General Letitia James for alleged mortgage fraud reportedly found evidence that undercuts key claims in her recent indictment, according to a Justice Department memo obtained by ABC News.
Sources familiar with the memo said prosecutors concluded that any financial gain James received from her allegedly falsified mortgage amounted to roughly $800 in the year she purchased the property. They also expressed doubt that the case could be proven beyond a reasonable doubt, citing vague federal mortgage guidelines about what qualifies as “occupancy.”
The memo, sent last month to then–U.S. Attorney Erik Siebert before his dismissal by President Donald Trump, warned that the case lacked clarity. Siebert was later replaced by interim U.S. Attorney Lindsey Halligan, who subsequently brought charges against James for bank fraud and making false statements.
James, who denies wrongdoing, is accused of falsely claiming a Virginia home purchased for her niece as a second residence. However, prosecutors found no record of significant rental income and determined James made a standard 20% down payment, typical for investment properties.
“The charges as alleged in this case represent intentional, criminal acts and tremendous breaches of the public’s trust,” Halligan said earlier.
James is scheduled to appear in federal court in Norfolk on Friday for her arraignment.