In July 2007, a federal grand jury led by the U.S. Attorney for New Jersey
Chris Christie based in Newark indicted James on 25 counts that include mail fraud, wire fraud, and conspiracy. James plead not guilty and his trial on five counts of fraud began March 4, 2008. On April 16, 2008, James was convicted of five counts of fraud by a federal jury and was sentenced to 27 months in prison.