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Federal grand jury targets NY attorney general after $454M judgment against Trump

Bondi authorizes special prosecutor to examine mortgage fraud allegations involving James, Sen. Adam Schiff

The Department of Justice convened a grand jury to investigate New York Attorney General Letitia James, marking an escalation in President Donald Trump's fight with New York's top prosecutor.

The investigation is being run out of Albany, New York, and focused on possible deprivation of rights allegations, two well-placed sources familiar with the probe told Fox News Digital.

The investigation is in an early stage, but Fox News Digital has learned that James's office received subpoenas for documents this week, including for information related to her civil fraud lawsuit against Trump.

Separately, Attorney General Pam Bondi has authorized a special prosecutor, Ed Martin, to investigate allegations of mortgage fraud involving James and California Democratic Sen. Adam Schiff.

A grand jury in Virginia will investigate claims involving James. A grand jury in Maryland will investigate claims involving Schiff. 

NY AG'S OFFICE HIRES ATTORNEY THAT REPPED HUNTER BIDEN TO DEFEND LETITIA JAMES AGAINST FRAUD ACCUSATIONS

New York Attorney General Letitia James speaks during a press conference, Sept. 21, 2022, in New York.
New York Attorney General Letitia James speaks during a press conference, Sept. 21, 2022, in New York.   (Brittainy Newman, File/The Associated Press)

 

James, a Democrat who was elected attorney general in 2018, has long been a target of Trump. James successfully brought civil charges against him for business fraud in 2022 and has had an instrumental role in challenging his current administration's executive actions in court.

A spokesperson for James suggested the action by the DOJ was a "weaponization" of its prosecutorial power.

"Any weaponization of the justice system should disturb every American," the spokesperson said. "We stand strongly behind our successful litigation against the Trump Organization and the National Rifle Association, and we will continue to stand up for New Yorkers’ rights."

A DOJ spokesperson declined to comment on both the special prosecutor and the grand jury investigation.

James began investigating the Trump Organization soon after she took office, eventually securing a $454 million judgment against the then-former president and some of Trump's company's executives, including two of his sons.

New York judge found Trump and his business partners grossly overstated Trump's wealth to obtain favorable loans and other financial benefits. James said at the time that financial fraud was not a "victimless crime."

"If average New Yorkers went into a bank and submitted false documents, the government would throw the book at them, and the same should be true for former presidents," James said.

‘DANGEROUS AND ILLEGAL’: DEMOCRAT AGS SUE TRUMP OVER EFFORT TO USE SNAP TO LOCATE MIGRANTS

President Donald Trump speaks from the Oval Office in Washington, D.C.
President Donald Trump speaks from the Oval Office on Wednesday, Aug. 6, 2025, in Washington, D.C. (Alex Brandon/The Associated Press)

 

James also has been a leading figure in bringing litigation challenging the second Trump administration's executive actions. James and other Democratic attorneys general have sued to fight spending freezes on federally funded social programs, mass firings of federal employees and restrictions on transgender care for minors, among other matters.

Convening a grand jury is the first step in an investigation that could potentially lead to an indictment. The panel examines evidence, including documents and witness interviews, and determines if probable cause exists to bring charges against a person. The process can take weeks or longer, and it is historically much easier for a grand jury to secure an indictment than it is to obtain a subsequent conviction.

 

Letitia James, Donald Trump
New York Attorney General Letitia James and President Donald Trump (Getty Images)

 

News of the investigation comes as tensions have continued to build between Trump and James.

In April, the Trump Federal Housing Finance Agency asked Attorney General Pam Bondi to investigate James over mortgage fraud, and the DOJ opened a separate investigation into that matter. James received subpoenas from a grand jury as part of the inquiry, the Washington Post reported.

Fox News confirmed on Friday that Pardon Attorney Ed Martin, who is also leading a weaponization task force, is heading up the mortgage fraud investigation into James, as well as leading a similar investigation into Sen. Adam Schiff, D-N.Y. James' mortgage case is based in Virginia, and Schiff's is in Maryland.

James has denied the mortgage-related allegations.

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Amid news of the mortgage inquiry, Trump called James a "wacky crook" on Truth Social.

"Letitia James, a totally corrupt politician, should resign from her position as New York State Attorney General, IMMEDIATELY," Trump wrote.

Fox News' Maria Paronich and Peter Doocy contributed to this story.

Ashley Oliver is a reporter for Fox News Digital and FOX Business, covering the Justice Department and legal affairs. Email story tips to ashley.oliver@fox.com.

Author: Ashley Oliver , David Spunt , Jake Gibson Fox News

Source: Fox News:

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