Letitia James has been charged with bank fraud and making false statements to a financial institution

A federal grand jury in the Eastern District of Virginia indicted New York Attorney General Letitia James on Thursday with two felony counts: bank fraud and making false statements to a financial institution.

The charges, unsealed in U.S. District Court (Case No. 2:25-cr-00122-JKW-DEM), stem from a 2020 mortgage James secured for a modest three-bedroom home in Norfolk, Virginia, where prosecutors allege she deliberately misrepresented the property’s use to pocket thousands in illicit savings. If convicted, the Democratic powerhouse – who spearheaded a landmark civil fraud case against President Donald Trump – faces up to 30 years in prison per count and fines exceeding $1 million, plus forfeiture of approximately $18,933 in alleged gains.

The indictment paints a damning picture of deception. On August 17, 2020, James purchased the property at 3121 Peronne Avenue for $137,000, financing it with a $109,600 loan from OVM Financial, later assigned to First Savings Bank and backed by Fannie Mae. To qualify for a preferential 3.000% interest rate – far below the 3.815% for investment properties – James signed Uniform Residential Loan Applications in July and August 2020, explicitly designating the home as her “secondary residence.” She attached a “Second Home Rider,” pledging under penalty of perjury to use it personally, not for rentals, timeshares, or shared ownership. Even her homeowners’ insurance policy was flagged as “owner-occupied non-seasonal.”

But according to the five-page indictment, James had no intention of living there. Instead, she rented the house to a family of three, treating it as a lucrative investment. Her federal tax returns – filed under oath – reveal Schedule E forms reporting rental income, zero days of personal use, and deductions for depreciation and maintenance, directly contradicting her loan documents. This sleight-of-hand allegedly saved her $17,837 in interest over the loan term, plus excess seller credits, totaling the $18,933 prosecutors seek to claw back. “The defendant knowingly exposed financial institutions to fraud risk while enriching herself,” the charging document states, accusing James of intent to defraud under 18 U.S.C. §§ 1344 and 1014.

James’ arraignment is set for October 24 before Magistrate Judge Douglas E. Miller in Norfolk. An indictment is merely an accusation – James is presumed innocent – but the timing and backstory scream political payback. The probe originated in April 2025 with a referral from Federal Housing Finance Agency Director Bill Pulte, a Trump ally, who flagged discrepancies in James’ Virginia and New York properties. By May, the DOJ launched an investigation under acting U.S. Attorney Erik S. Siebert. Career prosecutors, including Elizabeth Yusi, spent months interviewing witnesses and concluded in August-September there was “insufficient evidence” for charges, preparing to shelve the case.

Enter the Trump White House. Late September saw Trump publicly railing against AG Pam Bondi to indict James, former FBI Director James Comey, and Sen. Adam Schiff – foes from his first term. Siebert resigned amid pressure; deputies like Maya Song and Michael Ben’Ary were axed. In their place: Lindsey Halligan, Trump’s former personal attorney with zero prosecutorial experience, appointed interim U.S. Attorney. Halligan personally pitched the case to a fresh grand jury, securing the indictment just two weeks after Comey’s own Virginia charges for lying to Congress. Both cases came before the same 23-member panel, fueling cries of a “grand jury rigging.”

James fired back in a blistering statement: “This is desperate weaponization of our justice system by a president bent on punishing those who dare hold him accountable.” She vowed to fight, hiring a top defense team including Hunter Biden’s ex-attorney, and decried Trump’s “public statements” as proof of “political retribution at any cost.” New York Gov. Kathy Hochul echoed the outrage on X: “New Yorkers know @NewYorkStateAG James for her integrity… This is nothing less than the weaponization of the Justice Department.” Rep. Jasmine Crockett (D-TX) thundered, “They’re targeting her for one reason: she had the courage to hold Donald Trump accountable.” The NAACP labeled it a “fear tactic,” refusing to let the “president play mob boss.” Sen. Patty Murray (D-WA) urged bipartisan condemnation: “We need a DOJ for the people, not retribution.”

Republicans reveled in the irony. Trump, who forked over a $355 million civil fraud penalty to James in 2023 (upheld on liability but slashed on appeal), has long branded her probe a “witch hunt.” Allies like @hrkbenowen posted “Finally!” memes, tagging Manhattan DA Alvin Bragg for next. Conservative voices on X crowed, “No one is above the law – her words, not ours,” with posts like @Trumpwonbigly1’s “Letitia James indicted for bank fraud! ROTFLOL!” racking up laughs. Shark Tank’s Kevin O’Leary resurfaced, mocking James’ hypocrisy: “She prosecuted Trump for inflating values – standard real estate – but look at her now.” @AngryWhiteMan01 summed the schadenfreude: “The lady who lectured about accountability now has a date with it.”

This saga underscores a DOJ in flux under Trump 2.0. Bondi, sworn in January, has greenlit probes into 2020 election “conspirators” and Clinton Foundation ties, while FBI Director Kash Patel vows “draining the swamp.” Critics, including the ACLU, warn of “authoritarian erosion,” citing the Virginia office’s purge – three prosecutors out in weeks. Yet supporters argue grand juries – citizens, not politicians – vetted the evidence. “James dug her own grave,” quipped @NickRiz11626365, echoing her Trump-era mantra: “Nobody is above the law.”

James, 66, remains in office, her high-profile battles – from opioid settlements to gun control – intact for now. But as appeals loom and witnesses like her niece (tied to the purchase) surface, the case could drag into 2026, mirroring Trump’s own legal odyssey. In a nation weary of courtroom dramas, this feels less like justice and more like a sequel nobody asked for. Will the irony convict her, or the evidence? Only time – and a trial – will tell.