New York Attorney General Letitia James indicted on bank fraud charge

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A federal grand jury in the Eastern District of Virginia has handed down an indictment against New York Attorney General Letitia James, bringing one charge of bank fraud, according to sources familiar with the matter.

The investigation into James follows allegations that she misrepresented a Virginia residence as her “principal residence” in 2023 in order to secure favorable mortgage terms while serving as New York’s top law enforcement official.

Attorney General Letitia James speaks during a press conference at the Office of the New York State Attorney General on February 24, 2025. (Maureen Adarve/STAR MAX via AP)
Attorney General Letitia James speaks during a press conference at the Office of the New York State Attorney General on February 24, 2025. (Maureen Adarve/STAR MAX via AP)

The investigation was prompted, in part, by a referral from Federal Housing Finance Agency Director Bill Pulte, who alleged James “falsified records” to obtain preferential financing.

The indictment of James, a Democrat who has clashed with President Donald Trump in high-profile legal battles, follows months of speculation about whether prosecutors would be willing to bring a charge in response to Pulte’s allegations.

James responded to the indictment Thursday evening, saying, “This is nothing more than a continuation of the president’s desperate weaponization of our justice system.”

“I am not fearful — I am fearless.”

The single count of bank fraud stems from the same allegations first raised in April, when federal housing regulators accused James of making false statements on mortgage loan applications for a Norfolk, Virginia, property. The case has been assigned to U.S. District Judge Jamar K. Walker, an appointee of former President Joe Biden.

In August, Attorney General Pam Bondi appointed a special attorney to probe the mortgage allegations after Federal Housing Finance Agency Director Bill Pulte referred the matter to the Justice Department. At the time, prosecutors expressed skepticism that they had sufficient evidence to secure a conviction.

Trump later appointed Lindsey Halligan, one of his personal attorneys, as acting U.S. attorney for the Eastern District of Virginia, placing her in charge of the office that is now also handling the recent indictment against former FBI Director James Comey and now the New York attorney general.

“The scheme involved falsely representing the [Virginia] Property as a secondary residence to obtain favorable mortgage terms, while using it as an investment property with no intended or actual personal occupancy or use by her,” the five-page indictment, signed by Halligan, reads. It goes on to say James knew the property was used as an investment property with no intent to use or occupancy by her.

Notably, James sued the Trump Organization in civil court in 2023, alleging that Trump manipulated the value of his assets on paper in order to obtain favorable loans and insurance premiums. In August, a New York appeals court found the nearly $500 million penalty imposed by Judge Arthur Engoron in the civil fraud case was “excessive” and threw it out, though Engoron’s underlying verdict that Trump was liable for fraud was allowed to stand. James is appealing that decision. 

In response to targeted acts against him, like the civil fraud case, Trump has repeatedly called for the prosecution of political adversaries, including James Comey and Sen. Adam Schiff (D-CA). “We can’t delay any longer, it’s killing our reputation and credibility,” Trump wrote on Truth Social less than a week before Comey’s indictment.

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The bar for indictment before a grand jury is considerably lower than the threshold required to secure a conviction at trial.

Democrats swiftly denounced the indictment as an act of political retaliation. Gov. Kathy Hochul (D-NY) said Thursday that the country was witnessing “nothing less than the weaponization of the Justice Department to punish those who hold the powerful accountable.”

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