Trump Prosecutor Probing NY’s Letitia James Is Disqualified (1)

Another Trump administration effort to punish a political opponent is in legal limbo after a federal judge disqualified the US attorney in Albany, New York, investigating state Attorney General Letitia James.

John Sarcone, the acting US attorney for the Northern District of New York, wasn’t properly appointed and is barred from further investigating whether James violated President Donald Trump’s civil rights by suing him for fraud in 2022, US District Judge Lorna Schofield ruled Thursday.

Her decision is the latest blow to President Donald Trump’s push to install loyalists in key prosecutorial jobs. Lindsey Halliganand Alina Habba, Trump’s former personal lawyers, were disqualified last year from their respective posts as US attorneys in Virginia and New Jersey. Halligan’s criminal case against James for alleged mortgage fraud was tossed out as a result.

“Mr. Sarcone is disqualified from any further involvement in prosecuting or supervising the instant investigations, regardless of his title,” Schofield said. The judge said Sarcone’s appointment violated the requirement that US attorneys be confirmed by the Senate.

But the White House indicated that the fight over Sarcone’s appointment wasn’t over. “President Trump has full confidence in John Sarcone, whose work as US Attorney has made the nation safer,” White House spokeswoman Abigail Jackson said in a statement. “This ruling will not be the final say on the matter.”

Criminal Case Dismissed

Halligan has remained in office in eastern Virginia despite being disqualified. A federal judge on Wednesday ordered her to explain why she continues to use the US attorney title. Habba resigned from the New Jersey position.

Sarcone’s investigation has been focused on a civil fraud lawsuit James brought against Trump and his company that resulted in a $464 million penalty. The fine was vacated on appeal in August, but the finding that Trump committed fraud by inflating asset values was upheld. Both sides have appealed to the state’s highest court.

Sarcone’s office didn’t immediately respond to a message seeking comment.

The Trump administration had also targeted James in a mortgage-fraud prosecution in Virginia, accusing her of lying on bank documents in connection with multiple properties. But that case, along with one against former Federal Bureau of Investigation director James Comey, was dismissed following Halligan’s disqualification. A federal grand jury in Virginia declined to indict James for a second time over mortgage fraud claims.

Neither Halligan nor Habba had any prosecutorial experience before their appointments.

James sued in August to disqualify Sarcone and block subpoenas stemming from his investigation. She also said there was no justification for the federal probes, which she said were started “simply because the president is unhappy” that her office enforced New York law.

“This decision is an important win for the rule of law and we will continue to defend our office’s successful litigation from this administration’s political attacks,” a spokesperson for James said in a statement.

Sarcone also is investigating the attorney general’s civil suit against the National Rifle Association, a Trump ally. The ruling blocks subpoenas in that probe too. The judge said the subpoenas may be reissued “through a lawfully authorized official.”

‘Special Attorney’

The president has sought to bypass the Senate on US attorney appointments due to the “blue slip” custom that allows senators to veto nominees for their states. Sarcone served as interim US attorney in Albany for a 120-day term. Attorney General Pam Bondi subsequently named in a “special attorney” and first assistant US attorney for the district. The first assistant can carry out the duties of the US attorney if the role is still vacant.

At a Dec. 4 court hearing, evidence was presented showing that he had signed four documents — two subpoenas and their respective cover letters — as acting US attorney, even though he was designated a special attorney.

In a filing in the Sarcone case, lawyers for James said she was being targeted by Trump “for proving in court that the Trump Organization and President Trump’s political ally, the NRA, engaged in massive fraud and malfeasance against the people of New York.”

The case is Grand Jury Subpoenas v. US, 25-mc-00019, US District Court, Northern District of New York (Albany).

(Updates with comment from the White House.)

To contact the reporters on this story:
Erik Larson in New York at elarson4@bloomberg.net;
Beth Wang in Arlington at bwang613@bloomberg.net

To contact the editors responsible for this story:
Misyrlena Egkolfopoulou at megkolfopoul@bloomberg.net

Steve Stroth, Anthony Lin

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