Justice Department Investigates Letitia James Over Campaign Payments

The United States Department of Justice has opened an investigation into New York Attorney General Letitia James. Federal prosecutors are examining financial transactions between James's 2018 campaign and Iyesata Marsh, a longtime hairstylist. The probe focuses on payments made to Marsh for a Brooklyn studio rental and services provided for a musical performance at a political event.

This federal scrutiny follows the December charging of Marsh in Louisiana federal court for bank fraud and aggravated identity theft involving a Land Rover purchase. While Marsh faces these charges, investigators have not accused James of any wrongdoing in the Louisiana case.

The investigation follows a series of unsuccessful attempts by the Trump administration to prosecute James, who previously won a civil business fraud case against Donald Trump. Prior efforts to charge James with mortgage fraud were dismissed by a federal judge in November 2025, and two grand juries declined to indict her in December 2025. Attorney Abbe Lowell characterized the current probe as a political vendetta, asserting that the government is using an unrelated criminal case to target individuals based on their association with James.