New York Attorney General Letitia James was indicted Thursday in Alexandria, Virginia, as President Donald Trump’s Justice Department intensifies its efforts to pursue charges against his political opponents.
James has been under investigation since May regarding a 2023 mortgage she took out for a home in Norfolk, Virginia. Thursday’s indictment, however, pertains to a 2020 mortgage for a different property in Norfolk.
The grand jury returned two felony charges against James: bank fraud and making false statements to a financial institution. Her first court appearance is scheduled for October 24 in Norfolk.
According to the indictment, James allegedly misrepresented on her mortgage paperwork that the Norfolk home would be her second residence. This claim enabled her to secure favorable loan terms that would not have been available for an investment property. However, prosecutors contend that James did not use the home as a residence but instead rented it out to a family of three. They argue she knowingly misrepresented the property’s intended use, stating it would be a secondary home when it was, in fact, intended as an investment property.
As a result, prosecutors claim James received a lower mortgage rate than she would have had the property been classified as an investment, leading to improper financial gains of $18,933 over the course of the loan.
The charges come amid ongoing calls from Trump for the prosecution of his political adversaries. Former FBI Director James Comey, for example, pleaded not guilty Wednesday to allegedly making a false statement during a congressional proceeding. The Justice Department has also opened investigations into other figures, including former Trump national security adviser John Bolton and California Democratic Sen. Adam Schiff.
In response to the charges, James issued a statement, denouncing the indictment as politically motivated. “This is nothing more than a continuation of the president’s desperate weaponization of our justice system,” she said. “These charges are baseless, and the president’s own public statements make clear that his only goal is political retribution at any cost.”
James added, “The president’s actions are a grave violation of our Constitutional order and have drawn sharp criticism from members of both parties.”
James’ relationship with Trump has been contentious for years. She campaigned on a platform of investigating Trump and ultimately won a civil fraud case against him, his adult sons, and his real estate business. The court found them liable for inflating the value of their properties, resulting in a $355 million penalty. However, a New York appeals court overturned the penalties, and Trump has since appealed the verdict.
Throughout the 11-week trial, Trump’s disdain for James was palpable, with him openly criticizing her in court and in the hallways. At one point, Trump, testifying in the trial, said, “This is a political witch hunt and I think she should be ashamed of herself.” He added, “You believe this political hack back there and that’s unfortunate.”
James, for her part, often responded outside the courtroom, using social media and video statements to push back against the attacks.
In a twist, last month CNN reported that Justice Department prosecutors in Virginia, led by Erik Siebert at the time, had interviewed dozens of witnesses and concluded that there was not enough evidence to pursue criminal charges against James. However, under pressure from Trump to charge both James and Comey, Siebert resigned, and his replacement, Trump’s former personal attorney Lindsey Halligan, took over as U.S. Attorney.
“No one is above the law. The charges outlined in this case represent intentional, criminal actions and significant breaches of the public’s trust,” said Lindsey Halligan, the newly appointed U.S. Attorney, in a statement. “The facts and the law are clear, and we will continue to pursue justice in this case.”
Ed Martin, who heads the Trump administration’s efforts to address the alleged weaponization of the Justice Department, took to social media following the announcement of the charges, declaring: “Promises made, promises kept.” Martin had previously made headlines when he posed for photos outside of Letitia James’ Brooklyn home in August, where he called on her to resign, even sending a letter to her attorney demanding her departure.
Mortgage Fraud Investigation
The investigation into James initially centered around a mortgage she secured in 2023 for a property in Norfolk, Virginia. Her legal team provided documents to the Justice Department in April, refuting what they described as “thin” allegations. One of the documents in question incorrectly labeled the property as her primary residence. However, James’ attorneys countered this by presenting other documents to assert that no fraudulent activity had occurred.
In one email to her loan originator, James stated, “This property WILL NOT be my primary residence.” Despite this clarification, the property at the center of the dispute was not connected to the charges outlined in the indictment, according to a source familiar with the matter.
This report has been updated with additional information from CNN’s Casey Gannon and Devan Cole.
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