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An experienced federal prosecutor in Virginia has told her colleagues that she lacks confidence there is sufficient evidence to pursue criminal mortgage fraud charges against New York Attorney General Letitia James, as reported by a source familiar with the situation.

The prosecutor, Elizabeth Yusi, who oversees high-profile investigations in the Norfolk office for the U.S. Attorney for the Eastern District of Virginia, intends to soon present her assessment to Lindsey Halligan, a Trump ally who was appointed 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 ignored a request for comment.

High-Profile Confrontation Between Justice Department and Trump

This case signals another notable confrontation between the Justice Department and Trump, who has earlier fired attorneys who refused to take action against his political enemies. Halligan, who has no prosecutorial experience, was selected to the role following pressure from Trump after her former office holder concluded there was no legal basis to file criminal charges against James Comey, the previous FBI director.

Trump has openly demanded the U.S. Attorney General to charge James, who headed a civil fraud case against the ex-president that resulted in a $500 million fine, though the judgment was subsequently thrown out by a New York state appellate court.

Loan Fraud Accusations and Inquiry

William Pulte, the Federal Housing Finance Agency head and a dedicated Trump ally, made a criminal referral against James to the Justice Department in April, claiming she may have committed mortgage fraud. Pulte cited mortgage documents associated with a 2023 Norfolk, Virginia, home that James supported the acquisition of for her niece, in which James suggested on a document that she meant to reside in the home as her primary residence. James was holding the position of the Attorney General of New York at the time.

Prosecutors assembled a grand jury in May to examine the matter but faced difficulties building a case against James, notwithstanding demands from Trump allies. Messages from the time of the home purchase and further mortgage documents show James clearly indicating that she did not mean for the home to be her primary residence. This evidence poses a challenge for prosecutors to prove that James knowingly lied on the mortgage documents.

Recent Turnover in Prosecutorial Unit

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

Erik Siebert, Halligan’s predecessor, stepped down on September 19 after encountering pressure from Trump to file charges. Maya Song, a senior deputy to Siebert, was also dismissed in late September. Michael Ben’Ary, a top national security prosecutor in the office, was similarly dismissed last week after unfounded accusations from a pro-Trump media personality.

“The leadership is focused with penalizing the President’s opponents than they are with safeguarding our national security,” he stated in his departure note to colleagues.

“Justice for Americans affected by our enemies should not be dependent on what someone in the Department of Justice sees in their social media feed that day.”