Letitia James: New York Attorney General Indicted on Fraud Charges after Trump’s Pressure as She Calls It President’s ‘Political Retribution’

New York Attorney General Letitia James was indicted on Thursday by a federal grand jury in Virginia on charges of bank fraud and providing false information to a financial institution, allegedly netting nearly $19,000 in loan savings for a second home, according to the Department of Justice.

The indictment was issued in the Eastern District of Virginia — the same court where former FBI Director James Comey was charged on September 25 with lying to Congress and obstructing justice. “No one is above the law. The charges as alleged in this case represent intentional, criminal acts and tremendous breaches of the public’s trust,” US Attorney Lindsey Halligan said in a statement.

No One is Above Law

“The facts and the law in this case are clear, and we will continue following them to ensure that justice is served,” Halligan added. James responded in a statement: “This is nothing more than a continuation of the president’s desperate weaponization of our justice system. He is forcing federal law enforcement agencies to do his bidding, all because I did my job as the New York State Attorney General.”

“These charges are baseless, and the president’s own public statements make clear that his only goal is political retribution at any cost,” she added. “The president’s actions are a grave violation of our Constitutional order and have drawn sharp criticism from members of both parties.”

If found guilty on both charges, James could face a maximum sentence of 60 years in prison and fines of up to $2 million.

Prosecutors said that the 66-year-old bought a three-bedroom, one-bath home in Norfolk, Virginia, in August 2020 for about $137,000, mostly funded by a $109,600 loan that specifically barred her from using the property as a rental or investment home.

This allowed James “to secure favorable loan terms not available for investment properties,” saving her roughly $18,933 over the life of the loan, according to the five-page filing.

Meanwhile, her tax filings listed the home as a rental, reportedly generating thousands of dollars in extra income.

Property records from earlier this year show that on August 17, 2023, James granted power of attorney to her niece, Shamice Thompson-Hairston, giving her the authority to handle the Virginia property purchase — for which they obtained a $219,780 mortgage.

Misusing Her Power and Position

Thursday’s indictment outlines that the alleged bank fraud scheme took place from August 2020 to January 2024, “for the purpose of influencing the action of OVM Financial, a Fannie Mae-backed lender, upon an application for a loan.”

James “represented and affirmed in uniform residential loan applications and related documents that the Peronne Property would be used as a secondary residence, when in truth and fact, as [James] then knew, the property was intended and used as an investment property with no intended or actual personal occupancy or use by her,” the indictment alleged.

In April, federal housing regulator Bill Pulte referred James to the Justice Department, suggesting she may have committed crimes including wire fraud, mail fraud, bank fraud, and making false statements to a financial institution.

James had previously dismissed Pulte’s claims as “baseless.”

Democratic New York Governor Kathy Hochul weighed in, saying, “What we’re seeing today is nothing less than the weaponization of the Justice Department to punish those who hold the powerful accountable.”

Last year, James secured a civil judgment against the Trump Organization for allegedly inflating the value of its real estate empire. While the company was originally ordered to pay $355 million in penalties, it successfully appealed in August to have the fine overturned.

James’ office is now seeking to have the judgment reinstated, which, with interest, has grown to over $500 million. “I stand strongly behind my office’s litigation against the Trump Organization,” James added in her Thursday statement. “Judges have upheld the trial court’s finding that Donald Trump, his company, and his two sons are liable for fraud.”

“I am a proud woman of faith, and I know that faith and fear cannot share the same space,” she added. “And so today I am not fearful, I am fearless, and as my faith teaches me, no weapon formed against me shall prosper. We will fight these baseless charges aggressively, and my office will continue to fiercely protect New Yorkers and their rights. And I will continue to do my job.”

FBI investigators launched the criminal probe in May following Pulte’s referral, which also alleged that James had misclassified her Brooklyn brownstone as having four units instead of five. According to Pulte, this misclassification could have helped her secure better loan terms for both her New York and Virginia properties.

The Federal Housing Finance Agency head has made similar mortgage fraud allegations against Senator Adam Schiff (D-Calif.) for claiming a Maryland home as his primary residence.

Erik Siebert, who served as U.S. attorney before Halligan, resigned last month after choosing not to pursue charges against Comey and James.