New York Attorney General Letitia James, who led the high-profile civil fraud case against President Donald Trump, has been indicted by the U.S. Justice Department on two felony charges — bank fraud and making false statements to a financial institution.
The indictment, issued by a federal grand jury in Alexandria, Virginia, focuses on a 2020 mortgage James obtained for a property in Norfolk, Virginia. Prosecutors allege she falsely claimed the house would be her second residence to secure more favorable loan terms. They say she instead rented the home to a family, classifying it as an investment property in practice.
According to the Justice Department, that misrepresentation resulted in about $18,933 in improper financial benefits over the life of the loan. Each of the two felony charges carries a possible 30-year prison sentence and heavy fines.
James is scheduled to appear in court on October 24 in Norfolk. The department stated that she remains presumed innocent until proven guilty.
Political Tensions Surround the Case
Letitia James has long been an outspoken critic of President Trump. She gained national attention after pursuing the civil fraud lawsuit that accused Trump, his adult sons, and the Trump Organization of inflating property values to obtain better loans and insurance deals. A New York judge ruled against Trump and ordered him to pay $355 million in penalties, though a state appeals court later overturned the fine.
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The relationship between Trump and James has been hostile for years. During the civil trial, Trump repeatedly called the case a “political witch hunt,” accusing James of pursuing him for political gain. James defended her actions, saying her office was enforcing accountability and protecting the public from fraud.
The new indictment has reignited debate over the politicization of the Justice Department. Critics argue that the case appears to be retaliation by the Trump administration, while supporters claim it shows that no public official is above the law.
Earlier this year, federal prosecutors in Virginia, led by Erik Siebert, reportedly determined there was not enough evidence to charge James. Siebert later resigned, and Lindsey Halligan, a former personal attorney to President Trump and now U.S. Attorney for the Eastern District of Virginia, took over the case. Under Halligan’s leadership, prosecutors revisited the file, presented new evidence to a grand jury, and obtained the indictment.
Halligan said the charges reflect intentional misconduct and a breach of public trust. Meanwhile, Ed Martin, who oversees the Justice Department’s “weaponization” division, celebrated the indictment online, posting, “Promises made, promises kept.”
Details from the Indictment
The 14-page indictment claims James knowingly misled a bank during the mortgage process. She allegedly identified the Norfolk property as a “second home,” which qualified her for a lower interest rate. Prosecutors say she never used the house as a residence and began renting it shortly after purchase.
Investigators claim that James’s actions amount to bank fraud and false statements, both serious federal crimes. The charges fall under statutes that prohibit providing false information that affects financial institutions’ lending decisions.
James’s attorneys have denied any wrongdoing. They say any errors in the paperwork were unintentional, and that she was transparent with her lender. They also provided an email in which James wrote to her loan officer, “This property WILL NOT be my primary residence.” Her legal team argues that this clearly shows she did not intend to deceive anyone.
The indictment comes amid a series of politically sensitive prosecutions under the current administration. In recent weeks, the Justice Department has also filed charges against former FBI Director James Comey and opened investigations involving John Bolton and Senator Adam Schiff.
James responded to her indictment with a forceful statement, calling the case “baseless and politically motivated.” She accused the president of “weaponizing the justice system for personal revenge” and said she would fight the charges in court.
Letitia James remains in her role as New York’s Attorney General and has not indicated any plans to step down. Her upcoming court appearance in Virginia will be closely watched nationwide, marking the latest dramatic moment in the long and bitter feud between the New York Attorney General and the Trump administration.