AG Letitia James Accused of Wasting $20M on Outside Lawyers
New York Attorney General Letitia James faces Republican criticism for allegedly spending $20 million in taxpayer funds on outside legal counsel while under federal scrutiny for mortgage fraud.
Saritha Komatireddy, a former federal prosecutor challenging James in the upcoming election, leveled the accusations while state Democrats quietly expanded the parameters of a $10 million legal defense fund established last year to support party officials facing legal troubles, as New York Post reports.
The Republican candidate did not mince words in her statement to the outlet, calling the dedicated legal defense fund an affront to New York taxpayers who are already grappling with some of the nation’s highest living costs.
Komatireddy raised questions about why James has reportedly allocated tens of millions in public money to retain outside law firms to represent the Attorney General’s office. She noted that approximately 145 attorneys from those firms contributed a combined $23,000 to James’ campaign.
Among those firms is Davis Polk & Wardwell LLP, a prominent white-shoe law firm that holds a $575,000 retainer to represent the AG’s office in a sexual harassment lawsuit filed by a former senior aide. Notably, Bill Hochul, husband of Governor Kathy Hochul, receives approximately $1.3 million annually from Davis Polk, though he reportedly does not handle state-related matters according to the governor’s financial disclosure documents.
State lawmakers in Albany have renewed the defense fund to assist embattled elected officials with outside legal costs. James remains under federal scrutiny for alleged fraud connected to a mortgage application for a Virginia property.
Anthony Palumbo, the Senate Judiciary Committee Ranking Member representing Suffolk County, told New York Post that it is uniquely outrageous for the partisan legislature to approve millions for the state’s top law enforcement officer’s defense while residents struggle under crushing tax burdens and soaring energy costs. He added that James should comply with the law and properly complete mortgage applications rather than seeking financial assistance.
Defense Fund Remains Untapped—For Now
Despite the availability of the state fund, James has not utilized those resources. Instead, she opted to draw from a separate fund channeled through the Democratic Attorneys General Association, according to a spokesperson for her office.
The state comptroller’s office confirmed that none of the $10 million allocated has been withdrawn as of Friday.
However, the state Legislature has not only maintained the fund for another year but has also broadened the categories of legal expenses for which officials can seek reimbursement. Under the expanded provisions, any statewide elected official can now have taxpayers cover their legal bills if they face hearings or criminal indictments.
Komatireddy did not hold back in her condemnation of these developments, arguing that instead of addressing homelessness, mental illness, drug addiction, and repeat offenders, James prioritizes self-enrichment. She called for an end to what she described as self-dealing and corruption.
James Campaign Fires Back
The James campaign dismissed the allegations as politically motivated attacks. Campaign manager Phillip Jerez told New York Post that Komatireddy has spent her career ignoring Trump-backed right-wing special interests working to strip fundamental rights from New Yorkers and all Americans. He stated that while her opponent auditions for Trump, James will continue fighting for New York residents.
With information from New York Post
