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Federal prosecutors launch new probe of NY AG James’ financial transactions, CBS News reports

By Thomson Reuters Jan 8, 2026 | 2:17 PM

By Jan Wolfe

WASHINGTON, Jan 8 (Reuters) – Federal prosecutors have launched a new, ‍early-stage inquiry into New York Attorney General Letitia James’ financial transactions with her hairdresser, CBS News reported on ‌Thursday, citing two sources ‌familiar with the matter.

James, an elected Democrat and one of President Donald Trump’s top political ​antagonists, separately faced federal charges in Virginia that ‍accused her ​of providing misleading information ​on mortgage documents.

That case was ‍dismissed after a judge found the U.S. Attorney who secured the indictment, Lindsey Halligan, was also ‍unlawfully appointed. Prosecutors are appealing the ruling after two grand juries ‍rejected ‍attempts to revive ​the charges.

James has denied ​wrongdoing ⁠and argued that the ‌investigations are payback for suing Trump’s family business.

(Reporting by Jasper Ward in Washington, editing by Bhargav Acharya and ⁠Chizu Nomiyama )