New York Attorney General Faces Charges Tied To Mortgage Fraud; Indictment Follows Years After Her High-Profile Vow To Pursue Trump
Thursday, October 9, 2025, 7:00 P.M. ET. 4 Minute Read, By Jennifer Hodges & Art Fletcher: Englebrook Independent News,
ALEXANDRIA, VA.- New York Attorney General Letitia James was Indicted today in the Eastern District of Virginia on multiple counts of Bank Fraud and Making False Statements in connection with a 2023 real estate transaction.
Federal prosecutors allege that James misrepresented details about the purchase of a residence in Norfolk, Virginia, specifically by claiming the home was to be her primary residence to qualify for more favorable mortgage terms. The charges, unsealed Thursday afternoon, carry a maximum potential sentence of a maximum of up to 60 years in federal prison if convicted on all counts.
According to the indictment, the Department of Justice launched its investigation following a referral from the Federal Housing Finance Agency. Investigators reportedly determined that the statements James made to her lender were inconsistent with other official records and correspondence concerning her primary residence status.
James’s attorneys have denied any wrongdoing, asserting that any misstatements were “inadvertent and immaterial.” Defense counsel Abbe Lowell issued a written statement calling the case “politically driven”, noting that James “acted in good faith in all property disclosures and financial filings.”
The U.S. Attorney’s Office for the Eastern District of Virginia, now led by Lindsey Halligan, a Trump-era appointee, presented the case to the grand jury after internal review. According to reports from the Washington Post and The Guardian, at least one career prosecutor within the office had previously declined to pursue the case, citing insufficient evidence.
A Longtime Trump Adversary;
Letitia James rose to national prominence through her civil fraud lawsuit against former President Donald Trump and the Trump Organization, a case that initially led to a $450 million judgment before being reduced on appeal earlier this year.
During her 2018 campaign for New York attorney general, James made multiple public remarks about Trump, promising voters she would “get him” and “not hesitate to sue the president.” Those statements drew both support from progressive voters and criticism from legal observers who argued they reflected political bias.
Today’s indictment, coming from a federal court in Virginia rather than New York, adds a new dimension to the ongoing friction between James and Trump’s political allies. Critics of the prosecution argue that the charges may be retaliatory, while others contend that all public officials should be held to the same legal standards as private citizens.
Political and Legal Fallout;
New York Governor Kathy Hochul expressed support for James on Thursday, calling the indictment “an outrageous misuse of prosecutorial power.” Hochul added that “the people of New York elected Attorney General James because of her integrity, and I have full confidence in her leadership.”
Meanwhile, Trump spokesperson Steven Cheung declined to comment directly on the indictment but said, “Accountability is finally coming to those who weaponized their offices for political ends.”
Legal experts note that the indictment will likely lead to a lengthy pre-trial process, including motions to dismiss and discovery disputes. The full text of the indictment has not yet been publicly released, and no trial date has been scheduled.
If convicted, besides a potential federal prison term, James could also face significant financial penalties and potential disbarment under New York state law.
What Comes Next?
James is expected to appear in a Norfolk federal courtroom for an arraignment early next week, where she will enter a plea. Federal prosecutors have indicated they will oppose bail pending the hearing but have not yet commented on whether they intend to seek pretrial detention.
The case marks one of the most high-profile prosecutions of a sitting state attorney general in recent decades and may test the boundaries of federal-state political accountability at a time of heightened partisan tension.
Editor’s Note:
This article is based on information from official court filings, statements from the U.S. Attorney’s Office for the Eastern District of Virginia, and reporting from Reuters, The Associated Press, The Washington Post, and The Guardian. The full indictment has not yet been released, and we will be bringing you updates as we receive them. “The rules of the court require us to include a statement that states: The charges outlined in this publication are merely accusations, and the defendant and or defendants are presumed innocent unless and until proven guilty beyond reasonable doubt.”
