A federal prosecutor in Virginia was dismissed for allegedly mismanaging case evidence after opting not to pursue bank fraud charges against New York Attorney General Letitia James.

Assistant US Attorney Elizabeth Yusi was reportedly terminated from the Eastern District of Virginia’s Norfolk office earlier this month. The dismissal followed allegations that she improperly sent documents containing James’ personal information to her personal email, according to CNN.

Insiders indicate that this alleged mishandling of evidence played a role in Yusi’s removal from her position.

Yusi had been against filing charges of bank fraud and providing false information to a financial institution, linked to James’ 2020 property transaction in Norfolk.

Having joined the Department of Justice in 2010, Yusi is said to have authored an internal memo detailing the lack of sufficient evidence to prosecute James.

Her termination coincided with that of fellow assistant attorney Kristin Bird, who similarly resisted the Trump administration’s efforts to press criminal charges against the Democratic attorney general, as reported by CBS.

Following Yusi’s reluctance, Donald Trump-appointed interim US Attorney for the Eastern District of Virginia, Lindsey Halligan, filed the indictment against James herself. 

Margaret Donovan, Yusi’s lawyer, has denied any accusations that her client breached any confidential information. 

New York Attorney General Letitia James pleaded not guilty to bank fraud and making false statements to a financial institution on Friday 

James stands accused of lying to secure a better loan for a three-bedroom home she purchased in Norfolk, Virginia (pictured)

She said that Yusi ‘has never used her personal email account for any portion of any investigation’ and has ‘no record of any such email.’

‘Ms. Yusi is a well-respected prosecutor, a leader among her peers, and a consummate professional with nearly two decades of experience,’ Donovan said. 

While sharing investigative evidence is generally not against the law, it violates the DOJ’s policy. 

The criminal case against James had sparked internal controversy within the Virginia federal prosecutor’s office. 

Trump-loyalist Halligan had even expressed concerns that attorneys in her office were leaking private case information to the press. 

Beyond the Virginia office, Democrats have slammed the indictment as politically charged because Trump told Attorney General Pam Bondi to go after James, former FBI director James Comey and Senator Adam Schiff.

On Friday, James pleaded not guilty to the two felony charges stemming from the case, in which Halligan and other federal prosecutors allege she misled a bank while purchasing the $109,600 Norfolk home to obtain a more favorable loan. 

Outside the courthouse after entering her plea, James told supporters that her prosecution was ‘weaponizing the DOJ for revenge’ by the Trump administration.

Donald Trump had pushed for charges against James to be filed and has long battled the New York AG  

The DOJ’s case is being led by Eastern District of Virginia attorney Lindsey Halligan

‘I will not be deterred. I will not be distracted. I will do my job each and every day and that’s why I’m heading back to New York because there is work to be done.’

James has been accused of claiming her three-bedroom Virginia residence as a second residential home rather than an investment property.

In allegedly doing so, she was able to obtain better terms on her mortgage agreement. The indictment claims she saved nearly $19,000. 

James’ lawyers plan to have the case thrown out by arguing that the Justice Department improperly appointed Halligan, according to court filings. 

But if she is found guilty on both counts, she faces up to 60 years in prison and a maximum fine of $2 million.  

James has long been a political adversary of Trump after she successfully sued the president and his Trump Organization for fraud.

A New York judge ordered Trump to pay $500 million penalty in early 2024 before he won the election. A New York appeals court later overturned the fine.