Federal prosecutors are again circling New York Attorney General Letitia James, this time by scrutinizing her relationship with a longtime hairdresser now facing fraud charges. According to people familiar with the matter who spoke to the New York Times, investigators are examining past financial dealings between James, her political operation, and stylist Iyesata Marsh, opening a fresh line of inquiry against one of President Trump's most prominent critics. It's the latest in a series of federal efforts targeting James, who sued Trump over allegedly inflating his net worth by billions, though so far James is not formally accused of wrongdoing related to Marsh, nor is Marsh accused of any related to James.
Marsh was indicted last month in federal court in the Western District of Louisiana on charges of bank fraud and aggravated identity theft tied to the purchase of a Land Rover about three years ago. Prosecutors say she and her nephew used the identity of an Ohio woman to buy the vehicle. Marsh has not entered a plea, and there is no indication she is cooperating with authorities. Her lawyer declined to comment, as did the US attorney's office handling her case.
Prosecutors are said to be interested in payments James's 2018 campaign made to Marsh, including about $22,000 to rent a Brooklyn studio owned by Marsh and additional payments related to a musical performance at a political event in Albany. A Wall Street Journal report previously put Marsh's total compensation around $36,000, with the campaign saying she also worked as an event manager. Neither woman has been accused of wrongdoing in connection with those payments, but the inquiry underscores how federal officials are combing through James's finances and associations. Sources who spoke to CBS News say investigators are looking into money James has loaned Marsh over the years.
A prior bank fraud case centered on James' purchase of a Norfolk, Va., home collapsed after a judge ruled the US attorney who brought it had been improperly appointed; two subsequent grand juries declined to reindict her. Another civil rights inquiry into her office has been hobbled after the prosecutor who issued subpoenas was also found to be serving unlawfully. James's lawyer, Abbe Lowell, called the new investigation an extension of a failed "political vendetta" and an attempt to pressure people "based on their association with Ms. James."
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