Federal Prosecutors Open New Probe Into NY AG Letitia James Involving Campaign Payments Made To A Brooklyn Hairstylist

Prosecutors are now seeking to speak with Marsh about past financial transactions involving James and her campaign. The inquiry remains in its early stages and, according to reporting, does not allege that James was involved in Marsh’s recent criminal case.

Marsh was indicted last month by federal prosecutors in Louisiana on charges of bank fraud and aggravated identity theft, stemming from an alleged scheme to use another individual’s identity to secure a $48,000 auto loan to purchase a Land Rover from a Florida dealership. Court filings allege Marsh and her nephew used the personal information of an unidentified Ohio woman to obtain the loan. Marsh has pleaded not guilty and was released on $50,000 bail pending trial.

Notably, the renewed scrutiny comes after a string of failed federal efforts involving Attorney General James. A prior federal case alleging bank fraud and false statements related to a 2020 Norfolk, Virginia mortgage was dismissed by a federal judge, and a grand jury later declined to indict James on related theories on two separate occasions—outcomes that significantly undercut the Department of Justice’s prior push.