Prosecutors begin new inquiry into Letitia James’ financial transactions with hairdresser, 2 sources say

Federal prosecutors are conducting a fresh, early-stage inquiry into financial transactions between New York Attorney General Letitia James and her hairdresser, two sources familiar with the matter told CBS News.

The inquiry marks the latest effort to target James, one of President Trump’s perceived political adversaries, who pursued civil fraud charges against him while he was out of power. 

Last year, James was indicted by a grand jury in the Eastern District of Virginia over allegations she lied to her mortgage lender to secure a better interest rate. The case was dropped after a federal judge dismissed the charges on the grounds that the U.S. attorney who secured the indictment was unlawfully appointed. The Justice Department later tried, and failed twice to re-indict her after the charges were dismissed.

James’ attorney Abbe Lowell said in a statement that the Justice Department “appears to be using its vast resources to try to shake down people based on their association with Ms. James. Like their earlier attempts, this attack on Ms. James is doomed to fail.” He added, “This abuse of justice must end.”

This is a breaking story and will be updated.