New York Attorney General Letitia James was indicted on Thursday in a mortgage fraud case, facing charges of bank fraud and making false statements to a financial institution related to a 2020 home purchase in Norfolk, Virginia.
In response to the indictment, James issued a statement describing the charges as “nothing more than a continuation of President Trump’s weaponization of our justice system.” She added:
These charges are baseless, and the president’s own public statements make clear that his only goal is political retribution at any cost. The president’s actions are a grave violation of our Constitutional order and have drawn sharp criticism from members of both parties.
The Department of Justice (DOJ) alleges that James misrepresented the nature of a property she purchased in Norfolk, Virginia, in 2020. She claimed on her mortgage application that the home was a secondary residence, which qualifies for favorable loan terms, but prosecutors allege she actually bought it as an investment property. Mortgages for investment properties carry stricter requirements and higher interest rates, and the DOJ claims this misrepresentation allowed her to obtain more favorable financing than she would have been eligible for.
The case has drawn immediate scrutiny because of the unusual circumstances surrounding its prosecution. Lindsey Halligan, a former personal lawyer to Trump with no prior federal prosecutorial experience, presented the case to a grand jury in the Eastern District of Virginia after the resignation of Erik Siebert, a veteran career prosecutor who had overseen the investigation and resisted pressure to file charges. Civil liberties organizations, including the New York Civil Liberties Union and the American Civil Liberties Union, have criticized the indictment, calling it “the latest in a long list of brazen abuses of power by President Trump” and stating that it “makes it clearer than ever that President Trump has prioritized retaliation over the rule of law.”
James’s indictment comes after Trump was found liable for bank fraud in 2023, with the Trump Organization accused of falsifying records to secure more favorable loans. A $500 million civil penalty was initially imposed but later reduced on appeal for being excessive, though the finding of fraud was upheld. During that case, Trump publicly accused James of conducting a “political witch hunt” against him. Further, James’ indictment follows a separate indictment against former FBI Director James Comey for allegedly lying to Congress. He was also perceived as a political opponent of Trump and has recently pleaded not guilty to the DOJ.
The initial court appearance for James is scheduled for October 24 in Norfolk.