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A veteran federal prosecutor in Virginia has told her colleagues that she lacks confidence there is probable cause to pursue criminal mortgage fraud charges against New York Attorney General Letitia James, according to a source familiar with the situation.

The prosecutor, Elizabeth Yusi, who oversees major criminal cases in the Norfolk office for the U.S. Attorney for the Eastern District of Virginia, intends to soon present her conclusion to Lindsey Halligan, a supporter of Trump who was appointed as the U.S. Attorney for the Eastern District of Virginia recently.

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

Significant Clash Between Department of Justice and Former President

This case represents another notable confrontation between the Justice Department and Trump, who has earlier dismissed attorneys who declined to prosecute his political enemies. Halligan, who has no prosecutorial experience, was appointed to the role after requests by Trump after her preceding attorney concluded there was no probable cause to file criminal charges against James Comey, the former FBI director.

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

Loan Fraud Accusations and Inquiry

William Pulte, the Federal Housing Finance Agency head and a strong Trump ally, made a criminal referral against James to the Justice Department in April, asserting she may have committed mortgage fraud. Pulte cited mortgage documents related to a 2023 Norfolk, Virginia, home that James helped purchase for her niece, in which James appeared to indicate on a document that she meant to reside in the home as her principal dwelling. James was serving as the Attorney General of New York at the time.

Prosecutors assembled a grand jury in May to investigate the matter but had trouble building a case against James, notwithstanding urging from Trump allies. Messages from the time of the home purchase and other mortgage documents show James directly noting that she did not plan for the home to be her primary residence. This evidence poses a challenge for prosecutors to prove that James intentionally misled on the mortgage documents.

Recent Changes 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 experiencing pressure from Trump to file charges. Maya Song, a top deputy to Siebert, was also fired in late September. Michael Ben’Ary, a leading 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 punishing the President’s perceived enemies than they are with safeguarding our national security,” he wrote in his departure note to colleagues.

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