NY AG Letitia James Faces Federal Investigation Over Past Campaign Payments to Hairdresser Stella Green, January 8, 2026 Federal prosecutors have launched an investigation into financial transactions tied to New York Attorney General Letitia James and her longtime hairdresser, Iyesata Marsh. The probe focuses on payments made by James’ 2018 campaign for attorney general to Marsh to rent a Brooklyn studio she owns. Prosecutors are also examining payments to Marsh related to a musical performance at a political event in Albany, New York. The investigation is being led by Department of Justice Special Attorney Edward Martin Jr., who previously conducted parallel mortgage fraud probes involving James and Senator Adam Schiff, D-Calif. Last month, the Department of Justice failed to secure an indictment in the case after the U.S. attorney who presented the charges, Lindsey Halligan, was deemed improperly appointed. James’ attorney stated that the new investigation reflects “frustration with the string of failures in carrying out President Donald Trump’s political vendetta.” The attorney characterized the prosecution of Marsh as an attempt “to shake down people based on their association with Ms. James,” adding that “this attack on Ms. James is doomed to fail.” The attorney noted that “the desperation of those working for Trump is palpable and makes indelible the stain already put on this Justice Department.” Trump and James have been engaged in a bitter legal and political battle for years, with James leading high-profile investigations into Trump’s business practices and financial records. Their feud has made James a frequent target of Trump’s criticism, while Trump’s legal troubles in New York have underscored the intense clash between the president and the state’s top prosecutor. Politics