President Trump slammed New York Attorney General Letitia James as a “disgrace” after explosive whistleblower allegations revealed her office ignored $9.6 billion in sanctions violations while renewing a major bank’s license.
Trump Exposes James’s Regulatory Failures
President Donald Trump publicly condemned New York Attorney General Letitia James on August 13, 2025, calling her a “disgrace” after damning allegations surfaced regarding her office’s handling of massive sanctions violations. Whistleblower reports revealed that James’s office was briefed twice in early 2024 about Standard Chartered Bank’s alleged $9.6 billion in illicit payments to Iranian and Hezbollah-linked entities. Despite this evidence, James renewed SCB’s banking license, raising serious questions about her commitment to national security and anti-terrorism enforcement.
The controversy centers on terrorism finance experts and whistleblowers who provided James’s office with internal trade records documenting SCB’s alleged violations of U.S. sanctions. These briefings included Deputy Scott Spiegelman and other senior staff members who were made aware of the bank’s suspected role in facilitating payments to sanctioned entities. The failure to act on this intelligence represents a stunning dereliction of duty that could have compromised America’s efforts to combat terrorism financing.
Pattern of Political Weaponization Backfires
This scandal exposes the hypocrisy of James’s selective enforcement priorities. While she aggressively pursued politically motivated lawsuits against President Trump and his organization, resulting in significant legal penalties, she simultaneously ignored credible evidence of a major bank’s violations of federal sanctions designed to protect national security. The contrast highlights how James weaponized her office against political opponents while turning a blind eye to genuine threats to American interests.
The allegations raise serious concerns about regulatory capture and corruption within James’s office. Reports suggest that IBM, which allegedly advised SCB on concealing trade data, later hired a former deputy from James’s office. This revolving door between regulatory agencies and the entities they oversee undermines public trust and creates conflicts of interest that compromise enforcement integrity. Such arrangements represent the swamp mentality that American voters rejected.
National Security Implications Demand Federal Action
The scope of SCB’s alleged violations extends far beyond state jurisdiction, involving federal agencies including the Federal Reserve and SWIFT payment systems. Terrorism finance experts have called for immediate federal prosecution and Treasury Department intervention to address what they describe as systematic failures in sanctions enforcement. The $9.6 billion figure represents one of the largest alleged sanctions violations in recent history, with direct implications for America’s ability to combat terrorism financing.
The case remains before the U.S. Second Circuit Court, with mounting pressure for federal authorities to take decisive action. This scandal demonstrates how partisan politics can compromise critical national security functions when officials prioritize personal vendettas over their sworn duties. Americans deserve regulators who protect the homeland from terrorist financing rather than those who pursue political revenge while ignoring genuine threats to our safety and security.
Sources:
Justice Department Subpoenas Letitia James Trump Civil Rights
New York Business Fraud Lawsuit Against the Trump Organization