A federal judge on Monday agreed to throw out the criminal mortgage fraud case against New York Attorney General Letitia James, saying the prosecutor who brought the case was improperly appointed.
Judge Cameron McGowan Currie wrote in an order that Lindsey Halligan, the acting federal prosecutor for the Eastern District of Virginia who charged James, had “no lawful authority to present the indictment.” In October, James was charged with bank fraud and making a false statement to a financial institution in connection with a property she owns in Virginia. She pleaded not guilty to the charges.
The judge’s ruling came after James and her attorneys argued the case should be dismissed because Halligan was not properly appointed.
“I am heartened by today’s victory and grateful for the prayers and support I have received from around the country,” James said in a statement. “I remain fearless in the face of these baseless charges as I continue fighting for New Yorkers every single day.”
The Department of Justice did not immediately return a request for comment.
The development represents a setback to President Donald Trump, who has used the U.S. Justice Department in his second term to prosecute his perceived political enemies, like James.
On Monday, the same judge also threw out a criminal case brought against former FBI director James Comey. Trump replaced the previous U.S. attorney in the district with Halligan after publicly criticizing the previous prosecutor, Erik Siebert, for not taking action against James and Comey.
Currie noted in her order that Siebert resigned on Sept. 19, hours after Trump told reporters that he wanted him out of the job.
The following day, Trump posted a message on social media addressed to Attorney General Pam Bondi demanding investigations into Comey, James and others, while also floating Halligan as a candidate to replace Siebert.
“They’re all guilty as hell, but nothing is going to be done,” Trump wrote in the post. “Lindsey Halligan is a really good lawyer, and likes you, a lot. We can’t delay any longer, it’s killing our reputation and credibility. They impeached me twice, and indicted me (5 times!), OVER NOTHING. JUSTICE MUST BE SERVED, NOW!!!”
In her order, Currie described Halligan as “a former White House aide with no prior prosecutorial experience.”
John Fishwick, former U.S. attorney for the Western District of Virginia, wrote in an email that the case’s dismissal is a “pyrrhic victory” for James.
Still, he added, "There is a catchall law that gives DOJ six months to refile the charges against her, plus this decision today is headed to [the Supreme Court].”
The order dismissed the case without prejudice, meaning federal prosecutors will be allowed to refile the case.
Separately, James is pushing back against a federal investigation in New York. James’ office has been subpoenaed by John Sarcone, the Trump administration's hand-picked federal prosecutor in Albany. That investigation is related to cases James brought against Trump and the National Rifle Association.
James has challenged the subpoenas, also arguing that Sarcone wasn’t validly appointed to his position.
This is a developing story and has been updated.
