New York Attorney General Letitia James has intensified her legal offensive against former President Donald Trump and his associates with a new inquiry into possible insider trading tied to a market surge in early April.
The development adds to a growing list of 15 active investigations her office is pursuing related to Trump and his administration.
According to a report from Business Insider, James’s office is “looking at” whether members of Trump’s inner circle may have engaged in illegal stock trades after gaining advance knowledge of market-moving tariff announcements.
The inquiry appears to be focused on suspicious trading activity that occurred just before Trump posted on Truth Social, “THIS IS A GREAT TIME TO BUY!!!” — a statement that coincided with a notable bump in market performance.
The probe is powered by the Martin Act, a sweeping state securities fraud law that gives the New York Attorney General extraordinary authority to investigate and prosecute financial crimes. The 1921 statute allows the AG’s office to issue subpoenas, compel testimony, and pursue civil or criminal charges — all without needing to show proof of intent to defraud, making it one of the strongest tools in the nation for tackling Wall Street corruption.
While legal experts are split on the political implications of the investigation, many agree its scope is unprecedented.
“There’s been nothing like this,” said Armen Morian, a Manhattan attorney who previously defended Trump during James’s civil fraud lawsuit and formerly worked in the AG’s financial crimes unit.
Still, not all voices are convinced of the inquiry’s merit.
“This is a story of politics, not a story of law,” said NYU law professor Richard Epstein, echoing criticism that James is leveraging her office for political gain.
Should the inquiry gain momentum, the next step would involve issuing formal inquiry letters — administrative demands for documents or testimony — authorized by the bureau’s top brass.
“Such letters can ask for documents, data, or information,” said former Executive Deputy Attorney General Manisha M. Sheth. “Sometimes the recipient of an inquiry letter may volunteer to meet with the office to provide the requested information.”
James, a Democrat who campaigned on holding Trump accountable, has faced accusations of partisanship, especially as she defends herself against a separate DOJ investigation into alleged mortgage fraud — a case her attorney, Abbe Lowell, has called “improper political retribution.”
Meanwhile, Trump continues to lash out at James publicly, labeling her investigations “racist,” “unfounded,” and part of a long-running “witch hunt” against him and his businesses.
The outcome of the insider trading inquiry remains uncertain.
