Letitia James - Great USA News

A divided New York appeals court on Thursday overturned a half-billion-dollar judgment against President Donald Trump, easing a major financial burden while keeping the fraud case intact. This unexpected decision marks a significant development in the ongoing legal battle between the president and New York Attorney General Letitia James.

Story Highlights:

Appeals court throws out $500M penalty but upholds fraud ruling.
Trump hails decision as a “victory” on social media.
Case returns to New York’s highest court for further appeal.
Judges deeply divided, with no clear majority opinion.
Attorney General Letitia James faces major legal setback.

Court Ruling: Partial Win for Trump

The court’s decision eliminates the enormous financial penalty imposed on Trump but stops short of clearing him entirely. Justice Peter Moulton, writing for the panel, stated:

“While harm certainly occurred, it was not the cataclysmic harm that can justify a nearly half billion-dollar award to the state.”

The five-judge panel displayed deep divisions, with lengthy and complex opinions reflecting their disagreements. The ruling provides Trump an opportunity to take his case to New York’s Court of Appeals, the state’s highest judicial authority.

Impact on Letitia James and Trump’s Response

The decision represents a major setback for Attorney General Letitia James, who filed the case in 2022, accusing Trump and his real estate company of inflating net worth to secure favorable loans. The original judgment, reached after a monthslong trial, declared Trump liable for fraud, challenging the mogul image that fueled his political rise.

Trump responded on social media, declaring victory and praising the court for having “the Courage to throw out this unlawful and disgraceful Decision.”

Alina Habba, Trump’s former attorney and now a top federal prosecutor in New Jersey, said the ruling confirmed their stance:

“The attorney general’s case was politically motivated, legally baseless and grossly excessive.”

Judicial Split and Next Steps

Despite Trump’s claims of victory, the fraud finding remains intact, and the case is far from over. Judges were sharply divided:

Justice Moulton and Chief Judge Dianne Renwick upheld the fraud finding but wiped out the penalty.
Justice David Friedman wanted the entire case dismissed, arguing James lacked authority.
Judges John Higgitt and Llinet Rosado allowed the fraud judgment to stand but suggested Trump deserved a new trial, stating that “a remarkable situation has necessitated a remarkable solution.”

The case will now proceed to the state’s highest court, extending a legal battle that has become one of the most politically charged cases in recent history.

Political Tensions and Ongoing Investigations

The case has fueled deep animosity between Trump and James. Trump’s Justice Department has launched inquiries into James, including a criminal investigation into her personal real estate dealings and a civil rights review of her office’s conduct during the Trump probe.

Representatives for Letitia James have yet to comment on the latest ruling.

The New York appeals court’s decision to overturn the $500 million judgment while upholding the fraud ruling signals a partial victory for Trump but leaves significant legal uncertainty ahead. With the case now heading to New York’s highest court, the battle is far from over. For Attorney General Letitia James, the ruling is a setback in what was once a landmark victory, while for Trump, it removes a massive financial threat but keeps the stigma of fraud intact. The coming months will determine whether this ruling marks the beginning of Trump’s ultimate legal vindication or a prolonged chapter in his contentious legal fight.

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The Justice Department has issued subpoenas to New York Attorney General Letitia James’ office as part of a widening criminal investigation linked to former President Donald Trump. The grand jury in Albany is probing alleged violations of constitutional rights connected to James’ investigations of the Trump Organization and the National Rifle Association. While James’ lawyer calls the move political retaliation, the Justice Department remains silent. This development adds a new chapter to the ongoing legal battles between Trump and one of his fiercest critics, raising questions about justice, politics, and power in today’s volatile climate.

Story Highlights

Federal Subpoenas: Issued to NY Attorney General’s office over probes into Trump Organization and NRA.
Albany Grand Jury: Investigating alleged constitutional rights violations against Trump.
James’ Response: Lawyer calls the probe political retaliation and vows to defend office’s actions.
Wider Pattern: Other Trump critics, including Comey, Brennan, and Jack Smith, also under investigation.
Mortgage Fraud Probe: FBI pursuing separate case; James denies wrongdoing.
Civil Fraud Judgment: Trump ordered to pay $450M; appeal pending with $175M bond posted.
NRA Case: James’ office secured reforms in the gun rights group’s leadership structure.

The Justice Department has moved into uncharted political and legal territory, issuing subpoenas to the office of New York Attorney General Letitia James in connection with a criminal investigation, according to multiple sources familiar with the matter.

Two separate grand jury subpoenas, sent from the U.S. Attorney’s Office for the Northern District of New York, seek records tied to James’ ongoing and past investigations into two high-profile targets: the Trump Organization and the National Rifle Association. Sources say a grand jury has been convened in Albany to explore whether James engaged in “deprivation of rights,” a legal term for violating constitutional rights — allegations tied directly to her office’s handling of matters involving former President Donald Trump.

The Justice Department itself has declined public comment on either the subpoenas or the grand jury’s scope.

Abbe Lowell, an attorney representing James, issued a pointed statement calling the federal move “the most blatant and desperate example” of using government power for political payback. “Weaponizing the Department of Justice to try to punish an elected official for doing her job is an attack on the rule of law,” Lowell said, warning that it marked a “dangerous escalation.” He added that if prosecutors were genuinely interested in the truth, James’ office was “ready and waiting with the facts and law.”

The subpoenas place James among a growing roster of Trump’s longtime political adversaries who have found themselves under federal investigation since leaving office or clashing with the former president. This list includes former FBI Director James Comey, former CIA Director John Brennan, and several officials involved in election security or investigations into Russian interference in 2016 — among them former DHS official Miles Taylor, former CISA head Chris Krebs, and former special counsel Jack Smith, who indicted Trump twice in 2023.

In May, FBI Director Kash Patel confirmed a separate investigation into James, this one in the Eastern District of Virginia, focused on allegations that she committed fraud on a mortgage application. Lowell characterized those accusations as “baseless and long-discredited.”

The Civil Fraud Case at the Center of the Storm

The most prominent clash between Trump and James began in September 2022, when the New York Attorney General’s office filed a sweeping civil fraud lawsuit against Trump, his adult sons, and the Trump Organization. The case alleged the former president’s business empire repeatedly inflated the value of properties and assets to secure favorable terms from banks and insurers.

Following a lengthy and contentious trial that stretched across late 2023 and into 2024, a judge found Trump liable for fraud and ordered him to pay more than $450 million in penalties. Trump’s legal team, led in part by attorney Alina Habba — who has since taken a role as acting U.S. Attorney in New Jersey — filed an appeal. While the appeal is pending, Trump posted a $175 million bond.

The courtroom exchanges were anything but restrained. Trump used both the witness stand and courthouse hallways to denounce James, describing her as “a political hack” and accusing her of orchestrating “a political witch hunt.” James, often present in the courtroom gallery behind her attorneys, countered through press statements and social media videos defending her office’s work.

Beyond Trump: NRA Litigation and Broader Reach

James’ office has also taken on other powerful entities, notably the National Rifle Association. Her legal action against the NRA led to court-ordered structural reforms within the organization. A spokesperson for the attorney general’s office stressed that “any weaponization of the justice system should disturb every American” and underscored that they “stand strongly” by their litigation outcomes.

With grand juries now examining her actions in multiple jurisdictions, James faces a multi-pronged legal battle even as she continues to hold one of the most visible law enforcement positions in the country. The unfolding investigations underscore both the high stakes and the deeply personal nature of the ongoing feud between the former president and one of his most persistent critics.

The subpoenas against Letitia James mark an escalation in a long-running and highly public legal confrontation between the New York attorney general and former President Donald Trump. While James defends her actions as the fulfillment of her duty to enforce state laws, the federal inquiries place her under the same kind of scrutiny she has brought to others. As the grand jury proceedings unfold and Trump’s appeal in the civil fraud case moves forward, the clash between these two figures remains a high-stakes battle—one that blends law, politics, and personal rivalry, with implications reaching far beyond New York’s courtrooms.