New York Attorney General Letitia James has opened a preliminary investigation into potential insider trading involving individuals in President Donald Trump’s orbit, expanding her office’s already extensive legal scrutiny of the former president and his administration.
According to Business Insider, the inquiry centers on unusual trading activity that occurred shortly before a social media post by Trump on April 9 that read, “THIS IS A GREAT TIME TO BUY!!!”
The post preceded a notable uptick in the market and came on the heels of policy decisions that may have impacted stock values. Sources familiar with the matter say the Attorney General’s Office is examining whether any of Trump’s close associates traded on non-public information related to the announcement of new tariff policies.
The probe is being conducted under the authority of New York’s Martin Act, a century-old statute that grants the Attorney General broad powers to investigate and prosecute securities fraud, including subpoena authority and the right to question witnesses under oath. The Martin Act does not require proof of intent to defraud, making it a formidable legal tool in complex financial investigations.
The investigation comes amid mounting political tensions and legal pressure on both sides. Supporters of the inquiry argue it falls squarely within the AG’s mandate to regulate market integrity, particularly given the state’s proximity to Wall Street.
“The Martin Act gives the Attorney General the ability to probe exactly these kinds of market anomalies,” said Manisha M. Sheth, former Executive Deputy Attorney General for Economic Justice. “If there is reason to believe non-public information was used for financial gain, the law requires the state to look into it.”
However, critics have characterized the move as politically motivated. Richard Epstein, a law professor at NYU, called the inquiry “a story of politics, not a story of law,” suggesting that James’s history of pursuing legal actions against Trump raises questions about impartiality.
James’s office has not formally announced the investigation but is reportedly in the process of preparing “inquiry letters,” which are administrative requests for records or testimony, typically signed by an Assistant Attorney General and authorized by the bureau chief. These letters are often precursors to more formal subpoenas or enforcement actions.
The legal maneuver comes as James faces scrutiny of her own. The Department of Justice is reportedly investigating her for alleged mortgage fraud—claims she has denied as politically retaliatory. Her legal counsel, Abbe Lowell, has publicly dismissed the allegations as “improper political retribution.”
The inquiry marks the latest escalation in James’s high-profile legal campaign against Trump, which includes multiple civil and criminal actions targeting his businesses, financial statements, and political conduct.
Whether this insider trading probe will lead to charges remains unclear, but legal analysts note that insider trading cases—particularly those involving political figures—are notoriously difficult to prosecute without direct evidence of a quid pro quo or communications linking non-public information to a market transaction.
Still, the investigation signals that New York’s top legal officer is prepared to pursue financial misconduct at the intersection of politics and the stock market, even as the partisan temperature continues to rise.
