After repeated failures, Trump admin attempts to revive political prosecution against Letitia James

After a series of failed attempts to prosecute New York Attorney General Letitia James last year, the Trump administration is once again targeting her — this time through a new criminal referral alleging insurance fraud. 

According to documents obtained by MS Now, Federal Housing Finance Agency Director Bill Pulte has asked federal prosecutors in Florida and Illinois to investigate James over alleged misrepresentations in home insurance filings.

The move comes months after earlier prosecution efforts against James collapsed in court and failed to gain traction with multiple grand juries.

The new referral marks the latest chapter in a sustained campaign by President Donald Trump and his allies to pursue criminal charges against James — a Democrat who previously sued Trump and his business empire for fraud.

Pulte’s referral centers on claims that James inaccurately described how two properties would be occupied when obtaining insurance coverage. 

The allegations rely in part on social media posts from a Trump-aligned attorney, an unusual foundation for a federal criminal referral.

The renewed push follows a string of high-profile failures by the Trump Justice Department.

In October 2025, a grand jury indicted James on mortgage fraud charges after Trump publicly questioned why she had not been prosecuted. But a federal judge later dismissed the case, ruling that the Trump prosecutor who brought the case, Lindsey Halligan, was improperly appointed.

Two subsequent grand juries declined to bring the same charges against James — a significant signal that prosecutors lacked sufficient evidence to proceed.

Still, Trump’s pressure campaign continued.

“We can’t delay any longer, it’s killing our reputation and credibility,” Trump wrote to Attorney General Pam Bondi in September. “They impeached me twice, and indicted me (5 times!), OVER NOTHING. JUSTICE MUST BE SERVED, NOW!!!”

Nineteen days later, the now-invalidated prosecution moved forward.

Now, with the insurance fraud referral, Trump allies appear to be advancing a new legal theory after earlier efforts failed — a pattern that critics say reflects an ongoing attempt to use the justice system to punish a political adversary.

James’ legal team sharply condemned the latest move, framing it as part of a broader campaign of retaliation.

“Frustrated by repeated failures, where judges and grand juries have rejected their attempts to charge Attorney General James, Trump and his political enablers keep abusing their power to pursue a vendetta against her by trying to rename, refile, and repeat baseless allegations. They continue this improper revenge campaign instead of helping bring down the rising cost of living in this country,” James’ attorney, Abbe Lowell, said. “These desperate tactics will fail — just as every previous attempt has failed — and exposes an Administration that has abandoned its responsibility to the American people in favor of petty political payback.”

A criminal referral is not the same as a charge or indictment — it is simply a request for prosecutors to consider opening an investigation. 

But the pattern of repeated prosecutorial attempts, public pressure from Trump and the involvement of political allies makes clear that the administration continues to view the justice system as a tool of political retribution.