New York Attorney General Letitia James holds a press conference in the Manhattan borough of New York City, U.S., February 16, 2024. REUTERS/David Dee Delgado/File Photo

By Andrew Goudsward, Sarah N. Lynch and Jack Queen

WASHINGTON (Reuters) -The U.S. Justice Department has taken steps to investigate several long-running targets of President Donald Trump, escalating his administration's efforts to use government power against those who have pursued investigations into him or publicly resisted his agenda.

The Justice Department is investigating New York Attorney General Letitia James over her civil fraud case against Trump.

Prosecutors have convened a grand jury and subpoenaed James’ office for documents about the lawsuit against Trump and a separate case she brought against the National Rifle Association gun rights group, a person familiar with the investigation confirmed to Reuters on Friday.

The department has also named Ed Martin, whose nomination to be the top federal prosecutor in Washington, D.C., faltered amid opposition from some Republican senators, as a special attorney to investigate allegations of mortgage fraud, according to a separate person familiar with the move.

Both James and Democratic Senator Adam Schiff of California, a long-running Trump critic who led the first impeachment of him in 2020, have faced accusations they made false statements on real estate documents. Both have denied wrongdoing. Reuters could not immediately determine the scope of Martin's investigation.

An investigation does not necessarily result in charges.

Abbe Lowell, a lawyer representing James, called the reported probe "the most blatant and desperate example of this administration carrying out the president’s political retribution campaign," and said the appointment of Martin "makes it crystal clear this is a manufactured investigation to pursue political retribution."

"Any weaponization of the justice system should disturb every American. We stand strongly behind our successful litigation," James' office said in a statement.

Schiff's lawyer Preet Bharara said the allegations are "transparently false," and that Martin is "the most brazenly partisan and politically compromised person possible for the task."

Martin is also leading an effort to review instances of alleged weaponization against Trump and his supporters. He is not a special counsel, a prosecutor with a degree of independence who is appointed to handle politically sensitive investigations, and must work with a U.S. attorney's office to bring any charges, the source knowledgeable about his appointment told Reuters.

TRUMP TARGETS CRITICS

The investigations relate to officials Trump, who campaigned in part on a vow of retribution, has repeatedly assailed on social media and at political rallies as partisan enemies.

James is one of several Democratic state attorneys general who have repeatedly sued to block Trump administration actions.

The civil fraud case, brought forward in 2022, resulted in a $355 million judgment against Trump last year after a judge found he fraudulently overstated his net worth to dupe lenders as he built his real estate empire. Trump is appealing the judgment, which has grown with interest.

A New York appeals court signaled skepticism about the case during a court hearing last year.

Trump has repeatedly accused prosecutors of bringing the case against him for political reasons. The Trump administration's Justice Department has been scrutinizing the lawsuit as part of its weaponization review.

In the NRA case, a New York jury last year found the group's former leader and others liable for years of financial mismanagement. The NRA's lawyers alleged the group was targeted because of its political advocacy.

The Justice Department is examining whether the cases brought by James deprived Trump and others of their civil rights, according to the first person knowledgeable about the investigation, who did not provide evidence for the inquiry. The probe was reported earlier by Fox News and The New York Times.

Trump faced the same charge as part of a now-dismissed federal case accusing him of plotting to overturn his defeat in the 2020 election.

Legal decisions are often appealed, but it is highly unusual for a prosecutor to face a criminal investigation over legal cases, especially those that have gone to trial and been sustained by courts.

Reuters reported that prosecutors have been authorized to open a grand jury investigation into the actions of former officials in Democratic President Barack Obama's administration.

(Reporting by Andrew Goudsward and Sarah N. Lynch in Washington and Jack Queen in New York; Editing by Scott Malone, Aurora Ellis and Alistair Bell)