A massive setback for the Justice Department's fraud case against the Trump Organization and Donald Trump, as the two lead prosecutors have suddenly resigned, and grand jury proceedings have effectively been halted since the start of the year as new Manhattan US District Attorney Alvin Bragg has all but dropped the case.
The two prosecutors leading the Manhattan district attorney’s investigation into former President Donald J. Trump and his business practices abruptly resigned on Wednesday amid a monthlong pause in their presentation of evidence to a grand jury, according to people with knowledge of the matter. The stunning development comes not long after the high-stakes inquiry appeared to be gaining momentum, and throws its future into serious doubt.
The prosecutors, Carey R. Dunne and Mark F. Pomerantz, submitted their resignations after the new Manhattan district attorney, Alvin Bragg, indicated to them that he had doubts about moving forward with a case against Mr. Trump, the people said.
Mr. Pomerantz confirmed in a brief interview that he had resigned, but declined to elaborate. Mr. Dunne declined to comment.
Without Mr. Bragg’s commitment to move forward, the prosecutors late last month postponed a plan to question at least one witness before the grand jury, one of the people said. They have not questioned any witnesses in front of the grand jury for more than a month, essentially pausing their investigation into whether Mr. Trump inflated the value of his assets to obtain favorable loan terms from banks.
The precise reasons for Mr. Bragg’s pullback are unknown, and he has made few public statements about the status of the inquiry since taking office. In a statement responding to the resignations of the prosecutors, a spokeswoman for Mr. Bragg said that he was “grateful for their service” and that the investigation was ongoing.
Time is running out for this grand jury, whose term is scheduled to expire in April. Prosecutors can ask jurors to vote to extend their term, but generally avoid doing so. They also are often reluctant to impanel a new grand jury after an earlier one has heard testimony, because witnesses could make conflicting statements if asked to testify again.
And without Mr. Dunne, a high-ranking veteran of the office who has been closely involved with the inquiry for years, and Mr. Pomerantz, a leading figure in New York legal circles who was enlisted to work on it, the yearslong investigation could peter out.
The resignations, following the monthlong pause, mark a reversal after the investigation had recently intensified. Cyrus R. Vance Jr., Mr. Bragg’s predecessor, convened the grand jury in the fall, and prosecutors began questioning witnesses before his term concluded at the end of the year. (Mr. Vance did not seek re-election.)
In mid-January, reporters for The Times observed significant activity related to the investigation at the Lower Manhattan courthouse where the grand jury meets, with at least two witnesses visiting the building and staying inside for hours.
The witnesses were Mr. Trump’s longtime accountant and an expert in the real estate industry, according to people familiar with the appearances, which have not been previously reported. Mr. Dunne and Mr. Pomerantz also made regular appearances at the courthouse.
The burst of activity offered a sign that Mr. Bragg was forging ahead with the grand jury phase of the investigation, a final step before seeking charges.
But in recent weeks, that activity has ceased, and Mr. Dunne and Mr. Pomerantz have been seen only rarely.
This looks like a case where Bragg said that he wasn't going forward with the case after the previous DA, Cy Vance, empaneled a grand jury. The lead prosecutors obviously wanted to continue. Whatever the conflict was, it's gotten so bad that both lead prosecutors have resigned.
This reeks. All of it. No wonder then that the NY state case against Trump has moved into a much more aggressive phase. Tish James's office would have been working with the Manhattan DA on this. Surely they got wind that Bragg was going to all but shut the federal case down.
I don't know who got to Bragg, or to Justice, but both lead prosecutors resigning means that can't be swept away easily. There's a lot more to this story.
How much of it we'll ever know, I have no idea.
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