Prosecutors reviewing the mortgage occupancy fraud case against New York Attorney General Letitia James determined there is evidence that undercuts the allegations against her, according to an ABC News report based on sources.

According to a September memo summarizing the findings, any financial benefit James may have received would have been minimal — roughly $800 in the year she purchased the home. Prosecutors also noted concerns that federal mortgage guidelines for second homes do not clearly define occupancy, making it difficult to prove intent beyond a reasonable doubt.

Despite these concerns, James was indicted in early October in the U.S. details ⇒