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An experienced federal prosecutor in Virginia has advised her colleagues that she finds no basis there is probable cause to pursue criminal mortgage fraud charges against New York Attorney General Letitia James, as reported by 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 finding to Lindsey Halligan, a ally of the former president who was installed as the U.S. Attorney for the Eastern District of Virginia last month.

The Justice Department did not respond on the matter. The U.S. Attorney’s Office for the Eastern District of Virginia also did not respond to a request for comment.

Major Confrontation Between Department of Justice and Trump

This case represents another high-profile confrontation between the Justice Department and Trump, who has in the past dismissed attorneys who refused to take action against his critics. Halligan, who has no prosecutorial experience, was named to the role following pressure from Trump after her former office holder concluded there was insufficient evidence to file criminal charges against James Comey, the former FBI director.

Trump has publicly called for the U.S. Attorney General to charge James, who spearheaded a civil fraud case against the president that resulted in a half-billion dollar fine, though the judgment was later reversed by a New York state appellate court.

Mortgage Fraud Claims and Probe

William Pulte, the Federal Housing Finance Agency head and a staunch Trump ally, made a allegation against James to the Justice Department in April, alleging she may have committed mortgage fraud. Pulte referenced mortgage documents pertaining to a 2023 Norfolk, Virginia, home that James helped purchase for her niece, in which James seemed to state on a document that she intended to use 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 investigate the matter but faced difficulties building a case against James, notwithstanding demands from Trump allies. Messages from the time of the home purchase and other mortgage documents reveal James clearly indicating that she did not intend 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.

Ongoing Turnover in Legal Unit

Multiple prosecutors in the Eastern District of Virginia have been dismissed or resigned 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 senior 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 inaccurate accusations from a pro-Trump media personality.

“The leadership is more concerned with penalizing the President’s opponents than they are with defending our national security,” he wrote in his farewell letter to colleagues.

“Justice for Americans affected by our enemies should not be dependent on what someone in the Department of Justice encounters in their digital platforms that day.”