New York Attorney General Letitia James has been criminally indicted by a federal grand jury in Alexandria, Virginia. The indictment charges her with bank fraud and making false statements to a financial institution in connection with a 2020 home purchase in Norfolk, Virginia.
According to court documents, prosecutors allege that James misrepresented the property as a secondary residence when applying for the mortgage an assertion that enabled her to secure more favorable loan terms. In reality, the house was reportedly rented out to a family, effectively making it an investment property.
If convicted, James faces steep penalties including up to 30 years in prison per count, as well as potential fines of up to $1 million per count.
James quickly pushed back. In a public statement, she condemned the indictment as “nothing more than a continuation of the president’s desperate weaponization of our justice system.” She asserted that the charges are politically motivated, driven by Donald Trump’s efforts to retaliate against his political adversaries.
Legal observers note that it’s highly unusual for a sitting state attorney general especially one who has brought high-profile civil cases against powerful figures to face criminal prosecution tied to personal financial matters.
Notably, this indictment comes on the heels of James’s civil fraud case against Trump, in which he was found liable for falsifying financial records and ordered to pay substantial damages. Although an appeals court later voided the penalty as excessive, it upheld the underlying findings of fraud.
The timing of the indictment has drawn fierce criticism from Democratic leaders. New York Governor Kathy Hochul denounced the move as the “weaponization of the Justice Department.” Civil liberties organizations, including the New York Civil Liberties Union (NYCLU) and American Civil Liberties Union (ACLU), have called it a “brazen abuse of power.”
James is scheduled to make her first court appearance on October 24 in Norfolk, Virginia.
