On November 24, 2025, a federal judge dismissed the criminal mortgage fraud case against New York Attorney General Letitia James, ruling that the prosecutor who brought the charges lacked the legal authority to do so.
In a sharply worded order, Judge Cameron McGowan Currie determined that Lindsey Halligan—appointed acting federal prosecutor for the Eastern District of Virginia—had “no lawful authority to present the indictment.” James had been charged in October with bank fraud and making false statements to a financial institution related to a property she owns in Virginia. She pleaded not guilty.
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The ruling followed arguments from James and her legal team that Halligan’s appointment was invalid and the indictment should therefore be thrown out.
“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 respond to requests for comment.
The decision marks a significant setback for President Donald Trump, who has used the Justice Department in his second term to pursue criminal cases against political rivals, including James.
Judge Currie also dismissed a separate criminal case brought by Halligan against former FBI Director James Comey. Halligan was installed in the role after Trump publicly criticized the district’s previous U.S. attorney, Erik Siebert, for declining to prosecute James and Comey. Siebert resigned on September 19, hours after Trump told reporters he wanted him removed.
The next day, Trump posted a message on social media addressed to Attorney General Pam Bondi, pushing for investigations into Comey, James, and others—while suggesting Halligan as Siebert’s replacement.
“They’re all guilty as hell, but nothing is going to be done,” Trump wrote. “Lindsey Halligan is a really good lawyer, and likes you, a lot… JUSTICE MUST BE SERVED, NOW!!!”
In her order, Judge 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, called the dismissal a “pyrrhic victory” for James. He noted that federal law allows the Justice Department six months to refile the charges and said the dispute is likely headed to the U.S. Supreme Court.
The judge dismissed the case without prejudice, permitting federal prosecutors to bring the charges again if they choose.
Meanwhile, James is also fighting a separate federal investigation in New York. Her office has been subpoenaed by John Sarcone, the Trump administration’s appointed federal prosecutor in Albany, in connection with cases involving Trump and the National Rifle Association. James has challenged those subpoenas on the grounds that Sarcone, like Halligan, was not validly appointed.
