House Republican Conference Chairwoman Elise Stefanik (R-NY) has formally requested that U.S. Attorney General Pam Bondi investigate New York Attorney General Letitia James in connection with allegations that she failed to act on $9.6 billion in illicit payments by Standard Chartered Bank (SCB) to Iranian and Hezbollah-linked entities.
Stefanik’s letter highlights claims that James was briefed by whistleblowers and terrorist financing experts but did not take corrective measures.
According to the Gateway Pundit report cited by Stefanik, in early 2024 James and five senior staff members, including Deputy Scott Spiegleman, received detailed information on SCB’s illegal transactions from its New York branch.
The payments allegedly violated U.S. Treasury sanctions and were not disclosed under SCB’s deferred prosecution agreement monitored by the Southern District of New York and the U.S. Attorney’s Office for Washington, D.C.
Despite these briefings, James reportedly approved SCB’s annual state banking license, enabling the bank to continue operations without penalties.
Stefanik’s letter raises the question of whether this inaction reflected coordination with the Biden administration.
“Alarmingly, public reports indicate that in 2024 New York’s Attorney General Letitia James and her top lieutenants were briefed by terrorist financing experts and whistleblowers about these payments,” Stefanik wrote. “NYAG James not only did nothing about this but she then approved the bank’s annual license.”
“NYAG James’ failure to act raises many concerning questions including what else did she know about these illicit payments and was she coordinating with the Biden Administration to ignore these payments.”
The letter asks Bondi to appoint the Acting U.S. Attorney for the District of New Jersey as Special Attorney to oversee matters involving SCB, citing the bank’s use of servers in Newark as justification for federal oversight.
Without intervention, the case could expire on Aug. 19.
In addition to the SCB allegations, James faces a federal probe over alleged mortgage fraud.
In April, the Federal Housing Finance Agency referred her to the Department of Justice for reportedly falsifying primary residence information on properties in Virginia and New York to secure favorable loans.
James has denied any wrongdoing, calling the claims “baseless” and politically motivated.
James has faced mounting scrutiny over multiple controversies, including her 2020 civil lawsuit against the National Rifle Association and two federal grand jury subpoenas tied to her $454 million civil fraud case against President Donald Trump.
Meanwhile, her deputy Scott Spiegleman later joined IBM, a company involved in contracts with the SWIFT financial messaging platform.
Reports allege IBM Promontory advised SCB on concealing currency trade data, a detail cited by Republicans as a national security concern.
The allegations against James and SCB are now under review by the U.S. Second Circuit Court of Appeals, where judges will determine whether the case should proceed or be dismissed.
House Republicans stress that these investigations carry potential national security implications and have urged federal authorities to ensure accountability.
Critics contend that James’ handling of multiple matters—from SCB to mortgage fraud and other legal actions—warrants scrutiny and underscores the need for impartial enforcement of U.S. laws and sanctions.
