Tag: letitia james
Halligan's Retribution Prosecutions Of Comey and James Are Falling Apart Fast

Halligan's Retribution Prosecutions Of Comey and James Are Falling Apart Fast

Acting U.S. Attorney for the Eastern District of Virginia Lindsey Halligan is not having a good time.

Sure, indicting people because President Donald Trump said so was probably a bit of a rush, but now she’s stuck with two high-profile cases where the only help she has is prosecutors borrowed from other districts, since no one in her office would agree to handle these travesties.

While Halligan is running these cases on a shoestring, former FBI Director James Comey is going HAM and filing motion after motion to get rid of both Halligan and the indictment she secured against him.

He’s assembled a giant team of high-powered, experienced attorneys, and they are absolutely burying Halligan in a flurry of motions —an excellent strategy against an inexperienced prosecutor. Now, Halligan has to respond to all of these, and meanwhile, time marches on. Both Comey’s case and Halligan’s prosecution of New York Attorney General Letitia James are on the rocket docket, so Halligan has to simultaneously prepare for two big trials scheduled just a few weeks apart in January.

Comey had already filed two earlier motions to dismiss, one based on Halligan being illegally appointed and one alleging vindictive and selective prosecution. This week, he added three more.

First, he filed a motion to force the government to disclose the grand jury proceedings. Normally, grand juries are entitled to a “presumptionof regularity,” meaning the actions of the grand jury are presumed to be reasonable. But if a defendant can point to significant irregularities, they can get access to the grand jury materials.

Here, Comey points to two significant irregularities. First, it appears there may have been a tainted witness—an FBI agent who may have had access to privileged material between Comey and his attorneys, which would be covered by the attorney-client privilege. If the agent provided the grand jury with attorney-client information in an effort to buttress the indictment against Comey, that’s a big problem.

Additionally, Comey alleges that Halligan kept the grand jury well into the evening instead of sending them home after they refused to indict Comey on three counts. She then presented the two-count indictment and kept the jury until nearly 7 PM. Comey wants access to those proceedings to see if Halligan basically told the jury they couldn’t leave until they indicted him.

That might sound fanciful and ridiculous in a normal case with a normal prosecutor—a long-shot complaint. But this is no normal case, and Halligan is no normal prosecutor, so it’s not hard to imagine her thinking it’s totally appropriate to hammer a grand jury until she got what she wanted.

He’s also filed a motion for a bill of particulars. A defendant is supposed to know the basis for the charges against them so they can prepare for trial. But the indictment Halligan presented has literally no information about the factual basis for charging Comey. So, Comey is asking for all of it, and let’s face it: We know that whatever Halligan has as material supporting her fact-free indictment is probably pretty sparse.

If that wasn’t enough, Comey also filed a motion to dismiss the indictment “based on fundamental ambiguity and literal truth.” That’s a mouthful, but what it’s about is Texas Sen. Ted Cruz’s mangled, multi-part questions to Comey, creating confusion as to what, exactly, he was asking Comey about. The “literal truth” part is precisely what it sounds like—that Comey says he was literally truthful when responding to Cruz. Of course, if Comey was truthful, the whole indictment falls apart.

Meanwhile, in the Letitia James case …Halligan charged James with fraud over lying to her bank to get a better mortgage on a second home, but then renting it out in violation of the “Second Home Rider” contract. But there is language in her contract that says she can use the home “including short-term rentals.” In fact, Fannie Mae and Freddie Mac say that a second home rider means the property “may be rented out on a short-term basis.”

James’ grand-niece lives in the home and testified to a different grand jury convened by Halligan that she had lived there for many years without paying rent. But then Halligan didn’t put the grand-niece before the grand jury that ultimately indicted James. That looks a lot like Halligan withheld material—that could have shown James’s innocence—from the grand jury that ultimately indicted James.

Halligan is overmatched and, honestly, seems to think her job ended after she secured indictments. Even though she’s gotten Justice Department attorneys from other jurisdictions to help out, that assistance can’t remedy the deficiencies in her indictments.

These experienced defense attorneys are not going to let up, and by now, Halligan has to feel like a mouse being batted around in a cat’s claws.

How long do we give her before she quits? Of course, if either of these indictments gets dismissed, Halligan might be purged by the same people who installed her in the job.

Perhaps she’ll go back to her previous job in the administration, where she got to singlehandedly remove any material from the Smithsonian museums that made white people sad, like exhibits about slavery.

She’s not qualified for that either, of course. But it’s got to be easier than her current thankless gig.

Reprinted with permission from Daily Kos

Letitia James

Irredeemable Justice: Letitia James' Indictment Tolls The Depth Of Corruption

With the indictment of former FBI Director Jim Comey—on spurious charges, against the judgment of career prosecutors, and solely to satisfy the President’s personal vendetta—the Department of Justice crossed over to a new low.

But now, with the indictment of New York Attorney General Letitia James—and more reprisal indictments on the immediate horizon—it’s become clear that the corrupt abuse of the law to go after Trump’s adversaries is a principal mission of this Department of Justice. Far from a one-off, it’s the Department’s new business model.

I’ve explained before why bringing cases at the President’s insistence—not as acts of justice, but as political reprisals against his enemies—is as abhorrent a violation of the Constitution and DOJ norms as we’ve ever seen. It offends both the First Amendment and the Due Process Clause, flouts the Principles of Federal Prosecution that have served as the bible for federal prosecutors for generations, and betrays the most basic notions of impartial justice in any democracy.

Any prosecutor knows this to her marrow. It is the literal antithesis of the DOJ’s watchword of justice without fear or favor. That principle used to separate us from the corrupt justice systems that serve the personal whims of tyrants like Vladimir Putin and Recep Tayyip Erdoğan.

Our history has seen a few instances of presidents targeting citizens out of personal animus—Richard Nixon’s bitter obsession with Daniel Ellsberg comes to mind, which in fact became the genesis of Watergate. But none of them remotely approaches the open and shameless campaign Donald Trump has launched: a series of directives to his Justice Department, backed with the threat of discharge, to indict his enemies for no reason other than that they are his enemies.

Exhibit A (and it will literally be that in upcoming motions in both the Comey and James cases) is Trump’s own “private” message to Attorney General Pam Bondi, which he accidentally made public. It built to a frothing conclusion:

“We can’t delay any longer—it’s killing our reputation and credibility. They impeached me twice and indicted me (5 times!) OVER NOTHING. JUSTICE MUST BE SERVED, NOW!!!”

“Justice,” in Trump’s hands, plainly means punishment—punishment through the corrupt use of the criminal system—because these perceived antagonists brought righteous cases against him. In other words, they did their jobs and followed their oaths.

A recent survey by Emily Bazelon and Rick Hasen of fifty top D.C. lawyers—many former senior DOJ officials and evenly divided between Republicans and Democrats—found complete unanimity: every single respondent believes that Trump and Bondi have used the Department of Justice to target political enemies and reward allies.

Every single one.

As one respondent put it, “[w]hat’s happening is anathematic to everything we’ve ever stood for in the Department of Justice.”

Every single one. It’s beyond stunning—and for alumni of the Department, beyond heartbreaking.

There isn’t another side to the argument. Every actor in the system—from defense attorneys to Justices on the Supreme Court—recognizes what is happening. The only question is how the criminal justice system should respond.

The specifics of the James case are almost comically small-bore. James is charged with falsifying mortgage or rental information on a handful of forms—or at least, that appears to be the charge. As with the Comey indictment, the actual document is so elliptical as to be baffling. Both are sketchy and amateurish by DOJ standards, particularly for cases against such prominent defendants.

The apparent core allegation is that James bought a home for her great-niece to live in with a mortgage loan requiring her to use the $139,000 three-bedroom house as a secondary residence, not a rental property, but that she later treated it as an investment.

Even taken at face value, the claims are thin, and intent in particular will be hard to prove. The great-niece reportedly testified to a Norfolk grand jury that she has lived in the house rent-free the entire time. Yet the grand jury that U.S. Attorney Lindsay Halligan hastily convened last week never heard from her.

More generally, because of contradictory statements on different forms and labyrinthine lending regulations, the government will have a hard time proving intent—that James knowingly engaged in a “scheme to defraud” by misrepresenting the property’s use.

Courts have interpreted the intent requirement stringently, as requiring that the defendant knowingly engaged in a fraudulent scheme and specifically intended to deceive or cheat a financial institution in order to obtain money or property. With the cross-cutting evidence and confusing body of regulations, that’s a real hurdle.

But considering the difficulties of proof is really beside the point. The deeper issue isn’t evidentiary at all—it’s constitutional.

Even if we assume, for argument’s sake, that somewhere in the sheaf of mortgage documents there is a single false statement, and that the government could somehow prove it beyond a reasonable doubt, the critical legal point remains: it doesn’t matter.

That’s because a selective prosecution is a constitutional violation that requires dismissal, without regard to whether the government can prove a crime.

Under the Supreme Court’s two-part test, selective prosecution requires showing (1) that the defendant was singled out from among similarly situated individuals, and (2) that the decision was driven by an impermissible factor such as politics or personal reprisal.

Notice that the test does not depend on the strength of the case. The constitutional injury—the violation of due process and First Amendment rights—is the same either way.

By that measure, James’s claim is, if anything, even stronger than Comey’s.

On the first prong, prosecutions for perjury of Comey’s alleged sort are vanishingly rare, leaving the standards amorphous. The administration can at least argue that Comey’s prominence warranted heightened scrutiny.

Not so with James. U.S. Attorney’s Offices have limited resources and prosecute only a fraction of chargeable cases. Each office maintains guidelines setting a minimum threshold of loss or harm before a case merits prosecution. Even accepting the government’s theory in full, James’s case would involve a loss of just $18,000—the difference between the mortgage rate she obtained and what she supposedly should have paid. That is pocket change in federal terms, far below DOJ’s own charging thresholds. Such irregularities, if pursued at all, are resolved administratively, not criminally.

That makes the first prong of James’s claim mathematically airtight: others who allegedly commit comparable “frauds” are not charged.

And that leads directly to the second prong—motive. There has to have been some reason beyond the merits that James was charged.

The Comey indictment provides that reason. It shows that political reprisal has become the DOJ’s new organizing principle. Every fact demonstrating the impropriety of the Comey case applies with equal force here. In James’s case, the animus is even clearer: years of vitriolic attacks from Trump and his allies calling for her prosecution—rhetoric that began nearly a decade ago.

Every selective prosecution, apart from working a horrific injustice on the defendant, corrodes public faith in equal justice and leaves an indelible stain on the Department of Justice. When citizens see the criminal code wielded as a political cudgel, they lose faith not only in a single case but in the justice system itself. That cynicism may prove the most lasting damage of all.

Letitia James will very likely beat these charges—the case is weak, sloppy, and above all brazenly political. But the rank, corrupt misuse of the federal prosecutorial power exacts a cost even if the courts do the right thing.

The integrity of the Department of Justice is a core aspect of the rule of law. It now has been shattered, and the collateral damage to the rule of law itself is inevitable.

Not that Trump cares a farthing about any of that. He will keep skating from one wrecked case to another, claiming vindication or shifting blame as each collapses. He’s already extracted a pound of flesh—the anxiety, the reputational hit, the legal bills. For his enemies, that’s punishment enough.

Bondi and Halligan, though, may not skate so easily. They hold law licenses that obligate them to uphold ethical rules they’ve shredded beyond recognition. When the dust settles, their reckoning may be the only justice left standing.

The Framers’ Warning

The Founders foresaw this danger. Madison warned in Federalist 51 that the greatest threat to liberty would come not from foreign invasion but from “the accumulation of all powers, legislative, executive, and judiciary, in the same hands.” The Constitution’s structure—its separation of powers and independent judiciary—was meant precisely to forestall what Trump is now attempting: the conversion of the machinery of justice into a personal weapon of vengeance.

Hamilton, in Federalist 65, defined “the abuse or violation of some public trust” as the essence of political corruption. What greater abuse could there be than a President turning the criminal law into a means of retribution, and prosecutors into instruments of fear?

That is the terrain where the country now lives.

It’s also the territory leading in a straight line from constitutional rule to tyranny. The instances of democratic backsliding in the last 100 years predominantly begin not with tanks in the streets, but with the exploitation of legal mechanisms, transformed corruptly into instruments of power and vengeance for the personal benefit of a strongman tyrant.

The Department of Justice, once lionized as a bulwark against tyranny, has now been recast as tyranny’s first instrument. As all-in as Bondi, Halligan, and the rest have gone on Trump’s reprisal agenda, the Department is now beyond redemption. It falls to the rest of us—lawyers, judges, and citizens alike—to fight to restore the boundaries that the administration has annihilated.

Harry Litman is a former United States Attorney and the executive producer and host of the Talking Feds podcast. He has taught law at UCLA, Berkeley, and Georgetown and served as a deputy assistant attorney general in the Clinton Administration. Please consider subscribing to Talking Feds on Substack.

Reprinted with permission from Talking Feds.

Bill Pulte

The Real Scandal? Bill Pulte's Unethical 'Investigations' Of Trump Opponents

Bill Pulte, the head of Federal Housing Financial Authority, the agency that oversees Fannie Mae and Freddie Mac, has been in the news recently over his allegations that prominent opponents of President Trump had committed mortgage fraud. Most recently Pulte has put Federal Reserve Board Governor Lisa Cook in his crosshairs, claiming that she listed two homes as principal residences on mortgage applications.

Trump immediately used this allegation as a basis for trying to fire Cook, even though the Fed is supposed to be an independent agency, outside of the president’s control. Governor Cook sued Trump over his firing effort and the courts will ultimately decide whether this is within his power.

At this point, it is important to remember that Cook has not even been indicted for anything, much less convicted. We only have an allegation from Mr. Pulte.

It is also worth noting the irony of Trump, who was convicted in a civil trial for putting false information on loan forms, trying to fire someone for listing two homes as principal residences. Among the items that Trump put on his loan form was the claim that his 10,000 square foot condo was actually 32,000 square feet. Perhaps President Trump is offended by the pettiness of Cook’s alleged crime.

While the validity of Pulte’s allegations will have to be determined by the courts, the real scandal is Pulte himself. He is supposed to be running the agency that oversees the processing of tens of millions of mortgages by two huge quasi-public agencies. We are not supposed to be paying him to rifle through mortgage documents to find and disclose dirt that Trump can use against his political opponents.

The media really need to be directing some serious questions in Pulte’s direction. First and foremost, how did he happen to discover the mortgage abuses that he alleges were committed by New York Attorney General Letitia James, Senator Adam Schiff, and now Governor Lisa Cook. Were these “discoveries” the result of random inspections done by agency staff?

Furthermore, was he looking through non-public mortgage files to gather this information? Also, why did he make this information public when he uncovered it, instead of going through normal channels? If he had followed established procedures, he would have turned over the information to the agency’s inspector general, who would then turn if over to the Justice Department, if they determined it was appropriate. The first time the public would hear about it was when an indictment was issued.

What reason does Pulte have for not following normal procedures? He really needs to come clean on this.

He should also come clean on his holdings of Pulte Group stock, the huge housing construction company started by his grandfather. It may be the case that conflicts of interest are almost a job requirement in the Trump administration, but many of us still think that government officials should be working for the public, not trying to fatten their pocketbook.

If Pulte helps Trump get his wish and a Trump-controlled Fed lowers interest rates, it would provide a big boost to the Pulte Group’s profits. That hope would give Pulte a strong motivation to try to hasten the day when Trump appointees dominate the Fed’s Open Market Committee that sets interest rates.

Anyhow, there is definitely a big scandal here, but it involves Bill Pulte, not Lisa Cook. The media really need to take notice.

Dean Baker is a senior economist at the Center for Economic and Policy Research and the author of the 2016 book Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Please consider subscribing to his Substack site.

Reprinted with permission from Substack.

Donald Trump

Trump Begs For Cash To Keep Properties Out Of Letitia James' 'Filthy Hands'

Former President Donald Trump is on the verge of losing two of his valued real estate assets, and the alleged billionaire is now panhandling the public for small-dollar donations to hang onto his wealth.

The Guardian reported that Trump's 2024 campaign is sending emails to supporters specifically asking for their financial support to help pay the $464 million in judgment penalties and interest he owes for defrauding the State of New York. Attorney General Letitia James has already started the process of seizing the real estate tycoon's assets to cover the judgment, including one of his golf courses in Westchester County. She also said she looks at Trump's 40 Wall Street property "each and every day."

"Insane radical Democrat AG Letitia James wants to SEIZE my properties in New York. This includes the iconic Trump Tower," the ex-president wrote in an email with the subject line "Keep your filthy hands off Trump tower!"

"Democrats think that this will intimidate me. They think that if they take my cash to stifle my campaign, that I’ll GIVE UP!" The email continued. "But worst of all? They think that YOU will abandon me, and that you will GIVE UP on our country. Here’s one thing they don’t know: WE WILL NEVER SURRENDER!"

Trump's legal costs are likely far too large to be crowdfunded. A GoFundMe campaign to pay his New York civil fraud judgment that's still online as of this writing has only raised $1.6 million out of a $355 million goal (fundraisers to pay legal restitution are prohibited under GoFundMe's terms and conditions). It's not known yet how much Trump will raise from his email appeal, but the amount raised may not even cover the estimated $111,000 in interest his judgment accumulates with each passing day.

And of course, the civil fraud judgment isn't the only financial blow to Trump's empire. Former Elle columnist E. Jean Carroll successfully sued Trump for both sexual abuse and defamation, winning judgments of $5 million and $83.3 million, respectively. The former president posted a $90 million bond guaranteed by insurance giant Chubb Group earlier this month, which includes both the judgment and interest necessary to appeal civil judgments in the Empire State. However, his legal team has complained that obtaining a bond to cover the fraud judgment is a "practical impossibility."

"A bond of this size is rarely if ever seen. In the unusual circumstance that a bond of this size is issued, it is provided to the largest public companies in the world, not to individuals or privately held businesses," said Gary Giulietti of brokerage firm Lockton Companies. Giuletti — whom Trump hired to help him obtain a bond — added that for nine-figure judgments like Trump's, most guarantors won't accept real estate assets as collateral and would only agree to cash or cash equivalent assets, like securities.

If James did move to seize 40 Wall Street, she may be able to obtain as much as $220 million according to a 2012 appraisal. Trump Tower — the ex-president's signature Fifth Avenue property — was valued at $117 million by Forbes in 2017. His Mar-a-Lago estate in Florida could garner close to $20 million, and his Seven Springs property could bring in close to $57 million.

The 45th president of the United States may have a way out of losing his assets depending on how his Truth Social platform's initial public offering (IPO) performs in financial markets after its expected debut next week. The ex-president is expected to make $3 billion off of his stake in the company, which would be more than enough to cover the fraud judgment and his judgments in both E. Jean Carroll lawsuits.

Trump has continued to use Truth Social to attack both James and Judge Arthur Engoron, who handed down the $355 million verdict in the bench trial. He recently called the penalty "CRAZY" and referred to the judgment as "ELECTION INTERFERENCE."

"If I sold assets, and then won the Appeal, the assets would be forever gone," Trump wrote on Thursday. "Also, putting up money before an Appeal is VERY EXPENSIVE. When I win the Appeal, all of that money is gone, and I would have done nothing wrong."

Reprinted with permission from Alternet.

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