In a dramatic development that has sent shockwaves through legal and political circles, New York Attorney General Letitia James was indicted Thursday by a federal grand jury in Virginia on charges of bank fraud and making false claims to a financial institution. Federal prosecutors allege these actions saved her nearly $19,000 on a loan for a second home.<\/p>\n
The indictment, filed in the Eastern District of Virginia, comes from the same jurisdiction where former FBI Director James Comey was indicted last month on charges of lying to Congress and obstruction of justice.<\/p>\n
“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,” said US Attorney Lindsey Halligan in a statement. “The facts and the law in this case are clear, and we will continue following them to ensure that justice is served.”<\/p>\n
James faces serious legal consequences if convicted on both counts, including up to 60 years in prison and fines reaching $2 million.<\/p>\n
The 66-year-old prosecutor purchased a three-bedroom home in Norfolk, Virginia in August 2020 for approximately $137,000. According to the indictment, she financed most of the purchase with a $109,600 loan that specifically prohibited using the property as a rental investment. By allegedly misrepresenting the property’s intended use, prosecutors claim James secured “favorable loan terms not available for investment properties,” resulting in substantial savings over the life of the loan.<\/p>\n
The five-page filing details that 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.”<\/p>\n
When journalists visited the Norfolk property earlier this year, neighbors reported never having seen James at the residence. Meanwhile, her income tax filings reportedly classified the home as a rental property generating thousands of dollars in additional income.<\/p>\n
Property records reviewed earlier in 2023 show James granted power of attorney to her niece, Shamice Thompson-Hairston, authorizing the purchase of the Virginia property with a $219,780 mortgage. The indictment places the timeline of the alleged bank fraud scheme from August 2020 to January 2024.<\/p>\n
The case originated with a referral to the Justice Department in April from federal housing regulator Bill Pulte, who suggested James had committed multiple financial crimes including wire fraud, bank fraud, and false statements to a financial institution. At that time, James dismissed Pulte’s allegations as “baseless.”<\/p>\n
James responded forcefully to the indictment, saying, “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.”<\/p>\n
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.”<\/p>\n
New York Governor Kathy Hochul offered her support, stating, “What we’re seeing today is nothing less than the weaponization of the Justice Department to punish those who hold the powerful accountable.”<\/p>\n
The indictment comes amid ongoing legal battles between James and former President Trump. Last year, James won a civil judgment against the Trump Organization for allegedly inflating the value of its real estate holdings, resulting in a $355 million penalty. Trump successfully appealed that judgment in August, but James’ office is seeking reinstatement of the penalty, which had grown to over $500 million with interest.<\/p>\n
“I stand strongly behind my office’s litigation against the Trump Organization,” James stated. “Judges have upheld the trial court’s finding that Donald Trump, his company, and his two sons are liable for fraud.”<\/p>\n
The FBI investigation into James reportedly began in May following Pulte’s referral, which also contained allegations that she misclassified her Brooklyn brownstone as having four units instead of five, potentially securing more favorable loan terms on both properties.<\/p>\n
The case has already had significant repercussions within the Justice Department. Erik Siebert, who preceded current US Attorney Halligan, resigned last month after reportedly declining to bring charges against both Comey and James.<\/p>\n
“I am a proud woman of faith, and I know that faith and fear cannot share the same space,” James concluded in her statement. “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.”<\/p>\n","protected":false},"excerpt":{"rendered":"
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