New york: A US federal investigation into New York Attorney General Letitia James, a longtime adversary of President Donald Trump, has stalled due to insufficient evidence to secure a conviction, as reported by NBC. This halt comes amid allegations against James related to mortgage fraud concerning a Virginia home she purchased in 2023.

According to Anadolu Agency, the investigation has faced challenges as prosecutors and agents from the US Attorney's Office for the Eastern District of Virginia have been unable to gather enough evidence to seek an indictment against James. Despite convening a grand jury, officials have stated there is 'not nearly enough clear and convincing evidence' to prove that James knowingly made false statements to obtain a favorable mortgage rate.

James has denied any wrongdoing, describing the case as politically motivated through her attorney Abbe Lowell. The investigation was initiated following a referral by Bill Pulte, director of the Federal Housing Finance Agency, who alleged that James falsified documents for her Virginia home and two properties in New York to secure better loan terms.

The report outlines that James and her attorney argue the issue arose from a single document incorrectly labeling the Virginia property as her primary residence, asserting it was an isolated error. The White House and senior administration officials have reportedly pushed for charges, yet the case remains stagnant due to the lack of evidence.