Deep State prosecutors in the Eastern District of Virginia are attacking US Attorney Lindsey Halligan with leaks after she successfully returned an indictment against Letitia James.
ABC News selectively leaked a memo authored by a fired prosecutor to try to discredit the indictment against Letitia James.
New York Attorney General Letitia James was indicted by a federal grand jury in the Eastern District of Virginia earlier this month.
According to the DOJ, Letitia James was charged with two crimes: Bank Fraud under 18 U.S.C. Section 1344 and False Statements to a Financial Institution under 18 U.S.C. Section 1014.
“If convicted, Letitia James faces penalties including up to 30 years in prison per count, up to a $1 million fine on each count, and forfeiture,” the DOJ said.
The charges are related to a mortgage loan on a property James owns in Norfolk, Virginia, referred to as “the Perrone Property.”
According to the indictment reviewed by The Gateway Pundit, James was to use the property as her secondary residence and prohibited its use as a timesharing or other shared ownership arrangement or agreement that requires her either to rent the property or give any other person any control over the occupancy or use of the property.
Letitia James treated her Perrone property like an investment property on her Schedule E form and paid taxes on the rental income, further contradicting her claims of secondary residence.
ABC News obtained a memo authored by EDVA senior prosecutor Elizabeth Yusi. Interim US Attorney Lindsey Halligan fired Yusi last week.
According to portions of the memo leaked to ABC News, the Deep State prosecutors who refused to indict Letitia James claim the evidence they found undercuts Lindsey Halligan’s case.
The prosecutors gave their findings to US Attorney Erik Siebert before he was fired by President Trump.
ABC News reported that the rental income on James’ tax return is not in the “thousands” like the indictment alleged.
The leaked memo alleges that Letitia James did not collect rent from her niece.
“James purchased the home in Norfolk, Virginia, for her great-niece in 2020 for $137,000 and immediately allowed her and her children to begin living in the house rent-free. Prosecutors met with James’ niece, who stated that she had never signed a lease, had never paid rent for the home, and that James had often sent her money to cover some of the expenses, the memo concluded, according to sources familiar with its contents,” ABC News reported.
“While the indictment alleges that James made “thousand(s)” from rental income, sources tell ABC News that prosecutors found no record of James collecting rent from her niece beyond $1,350 that James reported on her 2020 tax return, which was said to cover the cost of utilities, according to sources familiar with the investigation,” ABC News reported.
“As of last month, investigators had met with ten witnesses who offered conflicting accounts about whether James’ actions constituted fraud or the degree to which she profited from her actions, the sources said,” the outlet reported.
“While the indictment alleges that James made “thousand(s)” from rental income, sources tell ABC News that prosecutors found no record of James collecting rent from her niece beyond $1,350 that James reported on her 2020 tax return…”https://t.co/ojHzfq7GoI pic.twitter.com/Mx6nqTQLNb
— Anna Bower (@AnnaBower) October 24, 2025
Letitia James was arraigned in a court in Norfolk, Virginia, on Friday. She pleaded not guilty to the charges.
Trial is set for January 26, 2026.