Trump appointed Lindsey Halligan, his former personal attorney, to oversee the case after another US prosecutor, Erik Siebert, resigned. Siebert was reportedly ousted after he told the justice department he had not found sufficient evidence to charge James.
The justice department has been investigating James for mortgage fraud, alleging she falsified bank and property records to receive better loan agreements, an administration official told the BBC.
Officials with the Federal Housing Finance Agency accused James of claiming a property in Norfolk, Virginia, as her primary residence in 2023 – when she was the top New York prosecutor – to secure a lower interest rate on a loan.
Mortgages for primary residences typically come with better terms. James said she had made a mistake with the form and later sent an email to the bank stating that it was not her primary residence.
Trump last month called on US Attorney General Pam Bondi, who leads the justice department, in a social media post to prosecute his political opponents, including James.
“We can’t delay any longer, it’s killing our reputation and credibility,” he wrote.
James was one of several Trump adversaries named in that post. He also called on Bondi to investigate former FBI Director James Comey, who pleaded not guilty on Wednesday after being charged with making a false statement to Congress.
The justice department has also reportedly opened investigations into Trump’s ex-national security adviser John Bolton and California Democratic Senator Adam Schiff.
In the civil fraud case brought by James, Trump was found liable of falsifying records to secure better loan deals, leading to a $500m (£375m) fine. The penalty was thrown out by an appeals court, which called the fine excessive, though it upheld that Trump was liable for fraud.
