The federal judge presiding over New York Attorney General Letitia James’ mortgage fraud case on Friday rejected a motion that sought to compel federal prosecutors to log all their communications with the media.
U.S. District Judge Jamar Walker issued a six-page order denying the request from James’ defense team, which was filed by attorney Abbe Lowell last week.
The motion followed reports that U.S. Attorney Lindsey Halligan had exchanged encrypted Signal messages with a reporter about the case.
“[T]he defendant does not demonstrate that it is necessary for the Court to order the government to track communications with the media in any particular form,” Walker wrote in his ruling.
“The defendant’s request that the government be required to keep a communication log is DENIED.”
The judge, who was appointed by President Biden, acknowledged that Halligan’s Signal chat with Lawfare senior editor Anna Bower earlier this month was “unusual,” though he stopped short of characterizing it as improper.
Walker said he would not “offer an opinion on whether they were improper in any sense, either legal or ethical.”
While rejecting the request for a communication log, Walker directed prosecutors to comply with existing court rules governing evidence preservation and disclosure.
He also issued a litigation hold “preventing the deletion or destruction of any records or communications having to do with the investigation or prosecution of this case.”
Reports indicate that Halligan’s Signal messages to Bower were set to automatically disappear after eight hours.
The defense motion argued that this practice could interfere with discovery obligations, but the judge disagreed.
“[T]he Court is not persuaded that preservation of evidence related to the government’s communications requires such evidence be maintained in any particular form,” Walker wrote.
“The defendant does not demonstrate that a communication log is necessary, so the Court will not order the government to maintain one.”
Walker added, “The Court trusts that counsel on both sides will comply with this Order without further handholding.”
In a separate request, federal prosecutors asked Walker to impose a gag order on James, citing the defense motion and related publicity. The judge declined to issue the gag order.
James pleaded not guilty last week to one count of bank fraud and one count of making a false statement to a financial institution.
According to the indictment, the charges stem from her purchase of a three-bedroom, one-bathroom home on Peronne Avenue in Norfolk, Virginia, in August 2020.
Prosecutors allege that James obtained a $109,600 loan to buy the property and signed a “second home rider” stating that she was the sole borrower who would occupy and use the residence as her own.
The filing claims that this false statement allowed her to secure more favorable mortgage terms, saving her nearly $19,000.
However, investigators say the home “was not occupied or used” by James, but “was instead used as a rental investment property” for her grandniece, Nakia Thompson.
The controversy deepened earlier this month when The New York Times reported that Thompson told a grand jury she never paid rent for the property.
Following that report, Halligan allegedly sent Signal messages disputing the article’s accuracy.
Judge Walker’s order did not determine whether those messages constituted material subject to discovery.
He stated only that prosecutors must preserve all relevant evidence moving forward.
If convicted on both counts, James faces up to 60 years in prison and a fine of up to $2 million.
The case continues in the U.S. District Court for the Eastern District of Virginia.
