A grand jury in Virginia charged on Thursday indicted New York Attorney General Letitia James with bank fraud and providing false information to a financial institution after evidence was presented to the jury by a prosecutor selected by President Donald Trump.
James has been a long-standing opponent of Trump, who recently demanded that criminal charges be brought against her and former FBI Director James Comey.
Comey was indicted by a grand jury in late September, which reviewed evidence from Lindsey Halligan, the same Trump-appointed U.S. Attorney for the Eastern District of Virginia who secured the indictment against James on Thursday.
Previously, James filed a civil lawsuit against Trump in New York, resulting in a determination of liability for business fraud against him and his company.
The five-page indictment released on Thursday claims James made false representations regarding a Fannie Mae-backed mortgage of approximately $109,600 used to purchase a three-bedroom house in Norfolk, Virginia, in August 2020.
At that time, James resided primarily in Brooklyn, New York, and is accused of falsifying information on a rider to that mortgage, which mandated her to use the Norfolk property as a secondary residence and not to rent it out, as per the indictment. However, instead of utilizing it as a second home, the indictment states that she rented it to a family of three.
The indictment states that James’ purported total “ill-gotten gains” were roughly $19,000 throughout the life of the loan she secured. Much of that benefit stemmed from a lower mortgage interest rate that she allegedly received due to not classifying the home as a rental investment, according to the indictment.
“No one is above the law. The charges detailed in this case signify deliberate criminal behavior and significant breaches of public trust,” stated Halligan in a statement following the indictment obtained in Alexandria federal court.
“The facts and applicable law in this case are evident, and we will persist in upholding them to guarantee that justice prevails,” Halligan expressed.
In her statement, James labeled the charges as “unfounded” and stated, “This is merely an extension of the president’s desperate misuse of our judicial system.”
“He is compelling federal law enforcement bodies to execute his orders, solely because I performed my responsibilities as the New York State Attorney General.”
James further stated, “Trump’s own public declarations clearly indicate that his sole intention is political revenge at any expense.” She remarked that “the president’s actions profoundly undermine our Constitutional framework and have sparked severe criticism from leaders across both political parties.”
“His choice to dismiss a U.S. Attorney who declined to pursue charges against me – only to appoint someone who is unfailingly loyal to him rather than the law – is contrary to our nation’s foundational principles. Now is the moment for leaders from both parties to condemn this appalling distortion of our justice system.”
James has been scheduled to make her first court appearance on October 24 in U.S. District Court in Norfolk, Virginia. The case has been assigned to Judge Jamar Walker, appointed to the bench in 2023 by then-President Joe Biden.
If found guilty, James could face a maximum sentence of 30 years in prison and penalties of up to $1 million per count. However, any actual sentencing would likely be significantly lighter according to federal guidelines.
Halligan secured a criminal indictment against Comey on September 25 for charges connected to his alleged false statements to Congress in 2020.
Halligan presented the evidence in Comey’s case herself after other prosecutors were hesitant to pursue it. It’s quite rare for a U.S. Attorney to bring a case before a grand jury.
Comey pleaded not guilty during a court session in Alexandria on Wednesday and is set to go to trial on January 5.
Halligan’s predecessor as acting U.S. Attorney, Erik Siebert, resigned on September 19, shortly after Trump expressed his desire for Siebert to leave.
Before his resignation, Siebert informed Justice Department officials that “investigators found insufficient evidence to charge Ms. James and also expressed concerns about a potential case against Mr. Comey,” as reported by The New York Times on the day of his departure.
Trump quickly appointed Halligan to take Siebert’s place.
New York Governor Kathy Hochul condemned the indictment of her fellow Democrat James.
“New Yorkers recognize @NewYorkStateAG James for her integrity, independence, and unwavering dedication to justice,” Hochul remarked in a post on X.
“What we are witnessing today signifies nothing short of the misuse of the Justice Department as a means to punish those who hold the powerful accountable,” the governor asserted.
Senate Minority Leader Chuck Schumer, D-N.Y., stated, “This is a representation of tyranny.”
“President Trump is leveraging the Justice Department as his personal attack dog, targeting Attorney General Tish James for the ‘offense’ of prosecuting him for fraud — and emerging victorious,” Schumer added. “One U.S. Attorney has already rejected this case. Consequently, Trump picked an unqualified individual willing to go after another political rival. This is not justice. It’s retribution. And it should alarm every American who believes in the principle that no one is above the law.”
James’ indictment follows a report from MSNBC three days earlier indicating that a senior prosecutor in Halligan’s office, Elizabeth Yusi, was resisting pressure to push a grand jury to charge James.
“Yusi … has confided to colleagues that she perceives no probable cause to suspect that James engaged in mortgage fraud,” as stated by the two sources cited in the MSNBC report from Monday.
Federal Housing Finance Agency Director Bill Pulte, in April, referred James for criminal investigation to the U.S. Justice Department, alleging she falsified banking documents and property records regarding the Norfolk residence in multiple instances.
James’ attorney, Abbe Lowell, issued a statement to NBC News on Thursday, declaring, “Attorney General James vehemently denies these accusations.”
“We are extremely concerned that this prosecution is motivated by President Trump’s quest for revenge,” Lowell remarked. “When a President can publicly compel charges against an individual – when it was reported that professional prosecutors determined no grounds existed – it signifies a serious assault on legal integrity. We intend to contest these charges through every available legal avenue.”
Pulte has made similar claims regarding alleged mortgage fraud against Federal Reserve Governor Lisa Cook.
Trump mentioned those allegations in August when he attempted to dismiss Cook, who, like James, is the first Black woman in her role. A federal district judge blocked Trump’s effort to remove Cook while her lawsuit challenging her dismissal was pending.
The Supreme Court on October 1 ruled that Cook could retain her position while awaiting the outcome of oral arguments on the matter, scheduled for January.
Cook, represented in her legal case by Lowell, has yet to face any criminal charges.
In early September, James requested New York’s highest court to overturn an appeals court ruling that invalidated the $500 million penalty imposed on Trump and his organization in the business fraud case.
“I firmly support my office’s legal actions against the Trump Organization,” James stated on Thursday.
“We carried out a two-year investigation driven by factual evidence – not political motives,” she remarked. “Judges have confirmed the trial court’s findings that Donald Trump, his company, and his two sons are culpable for fraud.”
“As a proud woman of faith, I understand that faith and fear cannot coexist,” James said.
“Thus, today I am not fearful; I am fearless, and as my faith instructs me, no weapon aimed against me shall succeed. We will vigorously contest these unfounded allegations and my office will persist in defending New Yorkers and their rights. I will continue fulfilling my responsibilities.”
