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Trump-backed investigations into NY AG Letitia James cost taxpayers $1.4M and counting

New York Attorney General Letitia James speaks during a news conference outside Manhattan federal court in this Feb. 14, 2025, file photo.
Yuki Iwamura
/
The Associated Press
New York Attorney General Letitia James speaks during a news conference outside Manhattan federal court in this Feb. 14, 2025, file photo.

Lobbyists, major labor unions, a co-owner of the Flatiron Building and Bronx District Attorney Darcel Clark all contributed to Attorney General Letitia James’ legal defense as she fended off an investigation from President Donald Trump’s Department of Justice.

Documents filed by the Democratic Attorneys General Association show that the national advocacy group spent around $625,000 to defend James from allegations by federal prosecutors in Virginia that she committed mortgage fraud in that state. A federal judge subsequently dismissed the case. Federal prosecutors are reportedly still investigating James in connection with her properties.

Taxpayers, meanwhile, have spent $1.4 million and counting to beat back another investigation by federal prosecutors in Albany, state records show. That tab is expected to rise as the case is appealed. That investigation, according to court filings, is examining James’ handling of a case centering on the Trump Organization’s valuation of properties, as well as another into the National Rifle Association.

On Monday, a former U.S. solicitor general argued that John Sarcone, Trump’s pick to lead the U.S. attorney’s office covering much of upstate New York, should remain barred from continuing the parallel investigation of James.

The U.S. attorney in Albany is looking into James' civil cases against President Donald Trump and the National Rifle Association.

James and her allies say the charges and investigations are political. Her office prevailed in the Trump Organization case, prompting the Republican president to publicly pressure DOJ leaders to go after James.

That sense of unfairness motivated donors to her legal defense, they said.

“It was a national outrage that the Trump administration would just be so hell-bent on going after our attorney general,” said state Sen. John Liu, a Queens Democrat who donated $200. “We didn't want Attorney General James to feel like … she didn't have everyone in, backing her.”

Emily Trifone, a spokesperson for the Democratic Attorneys General Association, said the organization raised more than $1 million for the legal defense fund. Trifone said it’s difficult to determine exactly who donated to James’ legal defense because all contributions go into the organization’s general fund.

Liu said he contributed after a Zoom call organized by the advocacy group 100 Black Men.

Jeff Gural, a real estate developer and co-owner of Manhattan’s historic Flatiron Building, contributed $5,000 to the Democratic Attorneys General Association. He confirmed his donation was aimed at James’ defense.

Other prominent figures donated to the association in the days after James’ indictment. Clark, the top prosecutor in the Bronx, gave $500. Valerie Berlin, a cofounder of the lobbying and public relations firm BerlinRosen, contributed $1,000. Lobbyist Emily Giske donated $3,000.

A political action committee associated with SEIU 1199, a union representing healthcare workers, contributed $50,000 on Oct. 9 — the same day James was charged with mortgage fraud. A union spokesperson said the donation was made to “protect our democratic institutions.”

Local 1180 of the Communication Workers of America, which represents New York City employees, contributed $3,000. A spokesperson didn’t return requests for comment.

Fearing that Trump would seek retribution against his perceived enemies, New York lawmakers created a special $10 million fund for James and others to use for legal defense. James’ office opted not to tap it, saying it wanted to save taxpayer funds, and instead turned to the Democratic Attorneys General Association.

The Democratic Attorneys General Association announced it was setting up a fund that James and other officials could tap.

The organization said it set up the legal defense fund to help any state prosecutors who ended up in Trump’s crosshairs. It’s still seeking contributions.

"As Democratic AGs continue to be on the front lines fighting to protect the rights and freedoms of all Americans, President Trump continues to ignore the law and target anyone who disagrees with him,” Trifone said. “DAGA will always defend all Democratic AGs and their staff who are targeted for political retribution by the Trump administration."

The federal investigation of James’ office stalled after Sarcone issued subpoenas for records from her cases against the Trump Organization and the NRA.

James’ office hired an outside law firm, Munger Tolles & Olson LLP, to challenge the subpoenas. Taxpayers are footing the bill because the subpoenas targeted the Office of Attorney General. A federal judge quashed them, finding that Sarcone was not properly appointed to his position and couldn’t lawfully sign off on the subpoenas.

A panel of appellate judges heard arguments over the matter on Monday. James’ office was represented by Donald Verrilli, a former U.S. solicitor general. Under the retainer agreement, partners like Verrilli bill for $1,650 per hour.

The state had paid the firm $1.4 million as of late March, spending records show. James’ office increased its overall contract with the firm to $2.5 million in February, according to the state comptroller’s office.

“Our office continues to defend its work in the Trump Organization and NRA cases against the federal government’s attack on the rule of law,” said Alexis Richards, a spokesperson for the attorney general’s office.

Jimmy Vielkind covers how state government and politics affect people throughout New York. He has covered Albany since 2008, most recently as a reporter for The Wall Street Journal.