Federal judge rules prosecutor’s appointment ‘defective’ in dramatic twist
A federal judge has dismissed a criminal case against New York attorney general Letitia James related to mortgage fraud, ruling that the justice department illegally appointed the prosecutor who filed the charges.
James was indicted by a federal grand jury last month on one charge of bank fraud and another of making false statements to a financial institution. Prosecutors said she misrepresented the nature of a property she bought in Norfolk, Virginia to get better loan terms.
But on Monday, US district Cameron McGowan Currie threw out that case – along with separate charges against former FBI director James Comey – because the appointment of interim US attorney Lindsey Halligan, who secured their indictments, was invalid.
“I conclude that all actions flowing from Ms. Halligan’s defective appointment, including securing and signing Mr. Comey’s indictment, constitute unlawful exercises of executive power and must be set aside,” Currie wrote in dismissing the Comey case, repeating the same line in her James verdict.
Both Comey and James argued the cases were politically motivated. Trump’s administration has also pursued mortgage fraud allegations against Lisa Cook, a Federal Reserve governor whose legal case is currently ongoing.
The James and Comey cases were both dismissed by Currie without prejudice – a ruling that could allow prosecutors to seek charges again.
Halligan was appointed as interim US attorney in September after the departure from the permanent role of Erik Siebert. Comey’s attorneys had made the case that she was invalidly appointed to the role, making his indictment “fatally flawed.”
James had been referred by Federal Housing Finance Agency (FHFA) director Bill Pulte to the department of justice in April for potential criminal prosecution, claiming that she misrepresented an investment property as her primary residence, misrepresented the number of units in a property, and misrepresented her father as her spouse.
As attorney general in 2022, James rose to prominence by filing a civil suit against the Trump Organization and working with the Manhattan district attorney’s criminal investigation of the then-former president’s real estate empire.
Her office won that case, with a subsequent ruling barring Trump from operating businesses in New York for three years and issuing fines of over $355 million – a financial penalty that was voided by an appeals court, although Trump’s liability was upheld.
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