Legal uncertainty is mounting in New Jersey’s federal court after a judge struck down President Donald Trump’s attempt to keep Alina Habba in charge of the U.S. attorney’s office through a legal loophole.
On Thursday, U.S. District Judge Matthew Brann ruled that Habba was unlawfully serving as U.S. attorney. Just hours later, U.S. District Judge Esther Salas postponed the sentencing of Marc Schessel, a CEO convicted of misleading investors during the pandemic. The move marked the first visible consequence of Brann’s decision, which barred Habba from overseeing any cases as head of the office.
Salas, an Obama appointee, indefinitely delayed the sentencing that had been set for September 4. In her order, she dismissed arguments from the Justice Department that Habba or her staff had the legal authority to handle Schessel’s case. Schessel was found guilty last summer of making false claims that his company, SCWorx, was buying and reselling tens of millions of Covid-19 test kits at the height of the pandemic.
Schessel’s attorney did not immediately respond to requests for comment.
As challenges to Habba’s role escalated in recent weeks, filings reveal that Deputy Attorney General Todd Blanche, the Justice Department’s No. 2, has begun co-signing routine criminal filings with her. The step appears aimed at shielding ongoing cases from potential disruption if her authority continues to be questioned. This unusual move places one of the nation’s top law enforcement officials on cases that would rarely require Washington’s direct involvement.
The Justice Department declined to comment on Blanche’s involvement.
In a 77-page opinion, Brann ruled that Habba “is not lawfully holding the office of United States Attorney” and has lacked legal authority since July 1. While he stayed the ruling pending appeal, Salas’ decision to pause Schessel’s sentencing suggests other judges may follow suit, potentially halting prosecutions until higher courts determine whether the Trump administration’s process for keeping Habba in the role without Senate confirmation was valid.
Attorney General Pam Bondi announced Thursday that she would appeal Brann’s ruling, though no appeal had been filed as of Friday afternoon. Habba’s office also declined to comment on Salas’ order.
The disruption follows earlier delays in other cases. In July, a triple homicide trial was postponed after Trump removed the career prosecutor handling it in order to install Habba as head of the office. That case has since been rescheduled for November.
