The U.S. Department of Justice has initiated a grand jury investigation into New York Attorney General Letitia James concerning her $454 million civil fraud case against former President Donald Trump. The DOJ has issued subpoenas to James as part of this probe, which is examining whether she violated Trump's civil rights during her prosecution. This investigation marks an escalation in scrutiny of James, who has been a prominent legal adversary to Trump. Separately, Attorney General James has filed a lawsuit against Early Warning Services, LLC, the operator of the Zelle peer-to-peer payments platform, alleging that the company enabled widespread fraud resulting in losses exceeding $1 billion from 2017 to 2023. The suit claims that Zelle's failure to implement critical security measures allowed scammers to exploit the platform. This legal action revives efforts previously abandoned by the Consumer Financial Protection Bureau under the Trump administration. The developments underscore ongoing legal and political tensions involving James and Trump, as well as James's broader focus on consumer protection issues.
New York claims Zelle’s shoddy security enabled a billion dollars in scams https://t.co/TPpoPVzmw0
On Wednesday, President Donald Trump took to Truth Social to attack New York Attorney General Letitia James, based on a report on allegations that she ignored evidence of $9.6 billion in sanctions violations. https://t.co/R8FQhu8Y7y
New York AG James sues Zelle parent company for alleged fraud https://t.co/hQmPzznyMG