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An experienced federal prosecutor in Virginia has advised her colleagues that she finds no basis there is sufficient evidence 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 major criminal cases in the Norfolk office for the U.S. Attorney for the Eastern District of Virginia, intends to soon present her finding to Lindsey Halligan, a ally of the former president who was placed as the U.S. Attorney for the Eastern District of Virginia last month.

The Justice Department offered no statement on the matter. The U.S. Attorney’s Office for the Eastern District of Virginia also did not respond to a request for comment.

High-Profile Clash Between Justice Department and Former President

This case represents another major confrontation between the Justice Department and Trump, who has previously dismissed attorneys who declined to take action against his opponents. Halligan, who lacks any prosecutorial experience, was named to the role after requests by Trump after her preceding attorney concluded there was insufficient evidence to file criminal charges against James Comey, the previous FBI director.

Trump has publicly demanded the U.S. Attorney General to take legal action against James, who spearheaded a civil fraud case against the president that resulted in a half-billion dollar fine, though the decision was subsequently overturned by a New York state appellate court.

Housing Fraud Accusations and Inquiry

William Pulte, the Federal Housing Finance Agency head and a dedicated Trump ally, made a allegation against James to the Justice Department in April, claiming she may have committed mortgage fraud. Pulte pointed to mortgage documents associated with a 2023 Norfolk, Virginia, home that James helped purchase for her niece, in which James suggested on a document that she intended to use the home as her principal dwelling. James was holding the position of the Attorney General of New York at the time.

Prosecutors formed a grand jury in May to investigate the matter but struggled building a case against James, notwithstanding pressure from Trump allies. Emails from the time of the home purchase and additional mortgage documents reveal James explicitly stating that she did not mean for the home to be her primary residence. This evidence makes it difficult for prosecutors to prove that James intentionally misled on the mortgage documents.

Recent Turnover in Justice Division

Multiple prosecutors in the Eastern District of Virginia have been dismissed or stepped down in recent weeks as Trump has increased pressure on the office to bring charges against Comey and James.

Erik Siebert, Halligan’s predecessor, left his position on September 19 after facing pressure from Trump to file charges. Maya Song, a key deputy to Siebert, was also terminated in late September. Michael Ben’Ary, a prominent national security prosecutor in the office, was removed last week after false accusations from a pro-Trump media personality.

“The leadership is focused with punishing the President’s perceived enemies than they are with defending our national security,” he stated in his departure note to colleagues.

“Justice for Americans harmed by our enemies should not be dependent on what someone in the Department of Justice reads in their online content that day.”