A grand jury in Virginia has charged indicted New York Attorney General Letitia James with allegations of bank fraud and making false statements to a financial institution after evidence was presented by a prosecutor chosen by President Donald Trump.
James has long been an opponent of Trump, who earlier called for criminal charges against both her and former FBI Director James Comey.
Comey was indicted in late September by a grand jury that reviewed evidence from Lindsey Halligan, the Trump-appointed U.S. Attorney for the Eastern District of Virginia who also secured the indictment against James.
Previously, James had sued Trump in a civil case in New York leading to a finding of liability for business fraud against him and his company.
The five-page indictment issued on Thursday cites James for allegedly providing false statements in relation to a Fannie Mae-backed mortgage of around $109,600 that she secured to purchase a three-bedroom property in Norfolk, Virginia, in August 2020.
Although her primary residence was in Brooklyn, New York, the indictment claims she misled on a rider to the mortgage that required her to classify the Norfolk home as a secondary residence and prohibited rental of the property. Instead, it is claimed she rented the home to a family of three.
The indictment states that James’ total supposed “ill-gotten gains” amounted to roughly $19,000 over the loan’s duration. Most of this sum came from supposed savings gained from having a lower interest rate on the mortgage compared to what she would have paid if the property was designated as a rental investment, according to the indictment.
“No one is above the law. The charges presented in this case are indicative of intentional, criminal conduct and significant breaches of public trust,” stated Halligan following the indictment in Alexandria federal court.
“The evidence and legal framework in this matter are evident, and we will persist in pursuing them to ensure justice prevails,” Halligan added.
In her response, James referred to the charges as “unfounded” and declared, “This is merely a continuation of the president’s frantic exploitation of our judicial system.”
“He is compelling federal law enforcement to do his will, solely because I performed my duties as the New York State Attorney General.”
James remarked that Trump’s public declarations reveal his sole aim is political revenge at whatever cost. “The actions of the president represent a serious breach of our Constitutional framework and have faced stern criticism from members across the political spectrum.”
“His action to dismiss a U.S. Attorney who refused to pursue charges against me – and replace them with a loyalist to the president rather than to the law – undermines the fundamental principles of our nation. This moment calls for leaders from both parties to denounce this overt manipulation of our justice system.”
James was instructed to make her initial court appearance on October 24 in U.S. District Court in Norfolk, Virginia. The case has been assigned to Judge Jamar Walker, who was appointed in 2023 by then-President Joe Biden.
If found guilty, James could face a maximum of 30 years in prison and fines up to $1 million for each count. However, any actual sentence is expected to be significantly less in line with federal sentencing guidelines.
On September 25, Halligan secured a criminal indictment against Comey concerning allegations of lying to Congress in 2020.
Halligan personally presented evidence in Comey’s case after other prosecutors hesitated to proceed. It’s notably rare for a U.S. Attorney to bring a case before a grand jury.
Comey entered a not guilty plea during a court hearing in Alexandria on Wednesday, with a trial scheduled for January 5.
Halligan’s predecessor as acting U.S. Attorney, Erik Siebert, resigned on September 19, shortly after Trump expressed a desire for his removal.
According to The New York Times, Siebert indicated to Justice Department officials before resigning that “investigators determined there was insufficient evidence to charge Ms. James and voiced concerns regarding a possible case against Mr. Comey.”
Trump quickly appointed Halligan to succeed Siebert.
New York Governor Kathy Hochul criticized the indictment targeting her fellow Democrat James.
“New Yorkers recognize @NewYorkStateAG James for her integrity, her independence, and her unwavering pursuit of justice,” Hochul stated in a post on X.
“What we’re witnessing today is nothing less than the weaponization of the Justice Department to penalize those who hold the powerful accountable,” the governor claimed.
Senate Minority Leader Chuck Schumer, D-N.Y., remarked, “This is what tyranny looks like.”
“President Trump is utilizing the Justice Department as his personal weapon against Attorney General Tish James for the ‘offense’ of prosecuting him for fraud — and succeeding,” Schumer commented. “One U.S. Attorney previously declined to take on this case. Thus, Trump handpicked an unsuitable individual to target another political adversary. This is not justice. It’s retribution. And it should shock every American who believes in the rule of law.”
James’ indictment emerged three days after MSNBC reported that a leading prosecutor in Halligan’s office, Elizabeth Yusi, was resisting pressure to persuade a grand jury to indict James.
“Yusi … has confided to colleagues that she sees no probable cause to suggest James engaged in mortgage fraud, two sources reported to MSNBC,” stated that report on Monday.
In April, Federal Housing Finance Agency Director Bill Pulte made a criminal referral against James to the U.S. Justice Department, alleging that she had falsified bank documents and property records regarding the Norfolk home on multiple occasions.
James’ attorney, Abbe Lowell, stated on Thursday to NBC News, “Attorney General James categorically and strongly denies these allegations.”
“We are extremely concerned that this case results from President Trump’s quest for vengeance,” Lowell remarked. “When a President can openly dictate that charges be filed against someone – after reports indicated that career attorneys found no basis for such – it poses a serious threat to the rule of law. We will contest these accusations through all legal avenues available.”
Pulte has leveled similar claims about alleged mortgage fraud against Federal Reserve Governor Lisa Cook.
Trump cited these claims in August attempting to dismiss Cook, who, similar to James, is the first Black woman to occupy her position. A federal district court judge prevented Trump from ousting Cook while her lawsuit against her termination was pending.
The Supreme Court on October 1 ruled that Cook could remain in her role while awaiting the outcome of verbal arguments on the matter, scheduled for January.
Cook, whose lawsuit is being advocated by Lowell, has yet to face criminal charges.
In early September, James requested New York’s highest court to overturn an appellate ruling that nullified a $500 million penalty placed on Trump and his company in the business fraud case.
“I stand firmly by my office’s legal actions against the Trump Organization,” James expressed in her statement on Thursday.
“Our investigation has spanned two years and is based on facts and evidence – not politics,” she articulated. “Judges have confirmed the findings of the trial court that Donald Trump, his business, and his two sons are liable for fraud.”
“I am a proud woman of faith, and I believe that faith and fear cannot coexist,” James stated.
“Therefore, today, I stand confident, I am not fearful, and as my faith asserts, no weapon formed against me shall succeed. We will vigorously combat these unfounded accusations, and my office will persist in staunchly defending New Yorkers and their rights. Furthermore, I will continue to fulfill my duties.”
