letitia james - The Latremie Post

AGs James, Tong other sue Linda McMahon and her department

**New York and Connecticut Attorneys General Lead Lawsuit Against Department of Education Over New PSLF Rule**

New York Attorney General Letitia James, Connecticut Attorney General William Tong, and 20 other state attorneys general have filed a lawsuit in the U.S. District Court for the District of Massachusetts against the U.S. Department of Education and Linda McMahon, in her official capacity as Secretary of the Department of Education.

Linda McMahon, former CEO of World Wrestling Entertainment (WWE) in Stamford, is named in the suit concerning a new federal rule restricting eligibility for the Public Service Loan Forgiveness (PSLF) program. The PSLF program allows government and nonprofit employees to have their federal student loans forgiven after ten years of qualifying service.

The lawsuit alleges that the Department of Education’s new rule unlawfully limits eligibility by disqualifying entire state governments, hospitals, schools, and nonprofit organizations if the government unilaterally determines they have engaged in activities disfavored by the previous administration. These activities reportedly include support for immigrants, gender-affirming health care, or diversity programs.

According to the attorneys general, this rule is not only unlawful but also politically motivated. They argue the rule intends to punish states and organizations that the administration opposes.

The PSLF program was established by Congress in 2007. Attorney General James emphasized its importance, saying, “Public Service Loan Forgiveness was created as a promise to teachers, nurses, firefighters, and social workers that their service to our communities would be honored.”

She added, “Instead, this administration has created a political loyalty test disguised as a regulation. It is unjust and unlawful to cut off loan forgiveness for hardworking Americans based on ideology. I will not let our federal government punish New York’s public servants for doing their jobs or standing up for our values.”

The Department of Education finalized the controversial new rule on October 31, with the rule scheduled to take effect in July of next year.

James and the other attorneys general warn that entire classes of public workers—including teachers, health professionals, and legal aid attorneys representing immigrants—could suddenly lose PSLF eligibility despite fulfilling all program requirements.

Highlighting current tensions, James pointed out that earlier this year, the U.S. Department of Justice sued New York over its “Protect Our Courts Act.” This state law ensures that immigration enforcement does not deter individuals from seeking justice in state courts. Under the new PSLF rule, the attorneys general contend that the administration could deem the “Protect Our Courts Act” as having a “substantial illegal purpose” and use that as grounds to deny loan forgiveness to thousands of New York public employees.

The lawsuit underscores that the new rule is flatly illegal. The PSLF law guarantees forgiveness for anyone who works full-time in qualifying public service. It does not grant the Department of Education authority to impose ideological tests or selectively target state policies or social programs while exempting federal agencies from similar scrutiny.

The group of attorneys general is asking the federal court to declare the new rule unlawful, vacate it, and bar the Department of Education from enforcing or implementing it. They stand united in their commitment to protect the promise of loan forgiveness for public servants nationwide.
https://westfaironline.com/fairfield/ags-james-tong-other-sue-linda-mcmahon-and-her-department/

Strip club executives allegedly bribed tax auditor with lap dances and luxury trips to slash tax bills

**Strip Club Executives Allegedly Bribed New York Tax Auditor to Slash Millions in Sales Taxes, Attorney General Charges**

A group of strip club executives reportedly bribed a New York state tax auditor with cash, luxury Florida trips, and lap dances valued at thousands of dollars per day to reduce millions from their tax bills, according to a sweeping indictment filed by Attorney General Letitia James.

The 79-count indictment targets top leaders of RCI Hospitality Holdings Inc., the Texas-based parent company behind popular strip clubs Rick’s Cabaret, Vivid Cabaret, and Hoops Cabaret. Prosecutors allege the executives used their venues to disguise bribes as “promotional” expenses, thereby avoiding more than $8 million in sales taxes between 2010 and 2024.

According to the indictment, the auditor received at least 13 all-expenses-paid trips to Florida, where company leadership provided hotel accommodations, restaurant meals, and up to $5,000 per day for private dances at RCI-owned clubs.

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**Defense Attorney Questions Criminal Intent and Timing**

Federal defense attorney Ronald Chapman II described the allegations as “sensational,” but suggested they may not prove criminal intent once examined in court.

“When you look a little deeper, things start to look a little bit different,” Chapman told Fox News Digital. “This case reminds me of the [President] Trump financial-fraud case, where prosecutors in New York built a sweeping narrative around business judgments that may not actually violate the law.”

Chapman emphasized that prosecutors face an uphill battle to establish a quid pro quo, i.e., that the auditor’s decisions were directly influenced by the perks received.

“It only turns into bribery when that is also done consistent with bad conduct, looking the other way on something,” he stated. “I just don’t see that other side of the quid pro quo yet.”

He also questioned the timing of the charges, highlighting the political context involving the embattled Attorney General.

“We see, once again, a very late indictment being brought. That means somebody brought this case from a pile of cases and decided to pluck it out,” Chapman explained. “Oftentimes we will see prosecutors right around the time they’re about to be facing re-election, trying to bring big cases like this with sensational headlines where they don’t really have the goods to fully handle the prosecution.”

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**Attorney General Letitia James Faces Separate Federal Charges**

Letitia James herself is facing legal troubles, as she will be arraigned in Virginia on federal bank fraud charges tied to a 2020 home purchase.

James is charged with one count of bank fraud and one count of making false statements to a financial institution. Prosecutors allege she misrepresented a property purchase in Norfolk, Virginia, as a secondary residence on loan and mortgage documents, when in fact it was used as a rental investment property—qualifying her for more favorable loan terms. She has pleaded not guilty.

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**Details of the Indictment**

The indictment, filed in New York County Supreme Court, names several RCI executives as defendants, including:

– Eric Langan, Chief Executive Officer
– Timothy Winata, Controller
– Bradley Chhay, Chief Financial Officer
– Ahmed “Ed” Anakar, Operations Director
– Shaun Kevlin, Nightclub Operations Director

A sixth individual has also been charged but remains unidentified due to a sealed indictment.

RCI Hospitality Holdings Inc. and its three Manhattan-based clubs—Rick’s Cabaret, Vivid Cabaret, and Hoops Cabaret and Sports Bar—are also charged. The case includes allegations of criminal tax fraud, bribery, conspiracy, and filing false business records.

If convicted of the top counts, Langan, Winata, and Anakar could each face up to 25 years in prison. Chhay and Kevlin face a maximum sentence of 15 years.

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**Stay Updated**

For further details and to read the full indictment, stay tuned to updates from Fox News and official court releases.
https://www.foxnews.com/us/strip-club-executives-allegedly-bribed-tax-auditor-lap-dances-luxury-trips-slash-tax-bills

‘Do you need a moment?’ DOJ lawyers put on the spot by judge during Letitia James hearing

Assistant U.S. Attorney Roger Keller Jr. openly admitted at the arraignment of New York Attorney General Letitia James (D) on Friday that the prosecution in her federal case is still sorting through the evidence.

“I am going through the discovery right now,” Keller told U.S. District Judge Jamar Walker, an appointee of former President Joe Biden, according to a report published in NOTUS.

The admission came as James, who pleaded not guilty in Norfolk, Virginia, faced a courtroom pressing the government for clarity and timeliness in its preparations.

“Normally, prosecutors fully investigate a case before pursuing an indictment and know well exactly what evidence exists to support criminal charges. However, this case is anything but normal,” the report read.

When Keller requested until mid-November to complete evidentiary disclosures, Judge Walker rejected the request.

“Waiting nearly a month after an indictment is not consistent with how we operate here,” Walker said.

Further remarks from Keller exposed the government’s lack of readiness. He proposed a two-week trial and estimated there would be eight to ten witnesses. James’ defense lawyer, Abbe Lowell, countered that he would “be shocked” if there were that many.

When asked whether the pretrial services report had been received, Keller stuttered and turned to a colleague, saying, “We have not, your honor. Oh, we have?”

“Do you need a moment?” the judge asked, referring to the lawyer’s apparent lack of preparation.

The hearing lasted under an hour and underscored that the team prosecuting James appears to be assembling its case as it moves forward.

Observers noted that this situation mirrors another recent prosecution in Virginia—that of former FBI Director James Comey—in which the government admitted it was “just getting our hands around discovery.”

Meanwhile, after her arraignment, James appeared before a supportive crowd and accused the justice system of being used as “a tool of revenge.”
https://www.rawstory.com/letitia-james-2674232588/