May 6, 2025
New York attorney general Letitia James launched an inquiry into possible insider trading within the Trump administration.
New York Attorney General Letitia James is keeping her foot on Donald Trump’s neck with an inquiry into potential insider trading.
Building on the 15 ongoing legal actions her office is pursuing against the president and his administration, James has launched a new inquiry into potential insider trading involving Trump’s inner circle. The investigation, reportedly tied to last month’s market-shaking tariff policies, was confirmed by an anonymous source who told Business Insider the AG’s office is “looking at” the matter.
The inquiry has sparked mixed reactions among legal experts. Some view it as a rightful and even essential use of the attorney general’s authority, considering her office’s proximity to the Stock Exchange. Critics, however, dismiss it as a politically driven stunt with little chance of success.
“This is a story of politics, not a story of law,” said Richard Epstein, a law professor at New York University.
The inquiry is backed by New York’s Martin Act, a 104-year-old statute widely regarded as the most powerful state-level securities fraud law in the U.S. It grants the attorney general sweeping authority to investigate Wall Street, including the ability to issue subpoenas, question witnesses under oath, and pursue both civil and criminal charges. Still, proving insider trading remains notoriously difficult, and whatever unfolds behind the scenes appears to be without precedent.
“There’s been nothing like this,” said Manhattan attorney Armen Morian, a former financial crimes prosecutor for the New York AG’s office who helped defend Trump during James’s fraud case.
The investigation aims to determine whether there were unusual trading spikes, such as those seen on April 9, just hours before Trump posted on Truth Social, “THIS IS A GREAT TIME TO BUY!!!” which led to a market surge. As part of the process, the attorney general’s office would eventually issue a wave of “inquiry letters,” formally authorized by the bureau’s chief or deputy chief and signed by the assistant attorney general overseeing the case.
“Such letters can ask for documents, data, or information,” former Executive Attorney General Manisha M. Sheth said. “Sometimes the recipient of an inquiry letter may volunteer to meet with the office to provide the requested information.”
If her insider trading inquiry moves forward, James, a Democrat who ran for attorney general vowing to investigate Trump, will likely face renewed accusations of political bias and retaliation. She’s currently under investigation by the DOJ for alleged mortgage fraud, a claim she has dismissed as baseless, and her lawyer, Abbe Lowell, has called “improper political retribution.”
Meanwhile, Trump has repeatedly denounced James’ probes into his finances and businesses as unfounded, “racist,” and part of a broader “political witch hunt.”
RELATED CONTENT: New Smartphone Scam Targets Bank Accounts Via NFC
