Letitia James Indicted for Alleged Mortgage Fraud Following DOJ Investigation

New York Attorney General Letitia James was indicted Friday on federal charges of bank fraud after a months-long investigation into a 2023 mortgage deal that prosecutors say involved falsified records and misrepresentations. The indictment marks a dramatic turn in a political saga that has long pitted James against President Donald Trump.

Trump-Appointed Prosecutor Presents Case

The indictment was brought by interim U.S. Attorney Lindsey Halligan, formerly Trump’s personal lawyer, who now leads the Eastern District of Virginia after being installed by President Trump last month. According to The Wall Street Journal, Halligan presented the evidence to a federal grand jury that returned charges of bank fraud against James in connection with a Virginia mortgage application.

The Justice Department investigation into James reportedly began in May following a referral by federal housing regulator Bill Pulte. His letter alleged James committed fraud to obtain favorable terms on a Norfolk, Virginia property, including misstating her residency and misrepresenting property details to qualify for government-backed assistance.

The Allegations

According to Pulte’s April referral, James may have:

• Falsified residence status to receive a lower mortgage rate

• Misrepresented the property description to meet eligibility requirements for federal loan programs

• Filed false documentation with a federally insured bank

Federal prosecutors now allege that James knowingly engaged in a scheme to defraud a lending institution by submitting these misleading records in exchange for better loan terms, constituting a violation of federal bank fraud statutes.

James Responds: ‘Political Retribution at Any Cost’

James struck back in a defiant public statement Thursday evening, accusing Trump and his allies of weaponizing the legal system.

“These charges are baseless, and the president’s own public statements make clear that his only goal is political retribution at any cost,” she said.
“This indictment is not about justice. It’s about revenge. And it’s all because I did my job as New York state attorney general.”

James previously led the civil case that resulted in a $450 million judgment against Trump, accusing him of inflating his assets to secure bank loans. However, an appeals court tossed that judgment in August, noting that no lender ever claimed to have been defrauded.

Trump: ‘This Is Only the Beginning’

President Trump, who has been publicly critical of James since her 2018 campaign where she pledged to “go after Trump,” praised the indictment during remarks at a rally in Ohio.

“She thought she could target me and walk away clean. This is only the beginning,” Trump said. “We said we’d hold people accountable. We’re keeping that promise.”

He further credited Halligan’s appointment with “getting the DOJ back on track” and signaled that additional investigations into political opponents were underway.

Halligan’s Rising Role

This marks the second high-profile indictment led by Halligan in recent weeks, following the obstruction and false statement charges filed against former FBI Director James Comey. Halligan has drawn praise from Trump-aligned conservatives for accelerating long-delayed investigations into former government officials accused of misconduct.

Her appointment signaled a sharp shift in DOJ strategy under Trump’s second term, with increased scrutiny of those viewed as having played partisan roles in past legal battles.

What’s Next

Letitia James is expected to be arraigned in federal court next week. Legal experts anticipate a contentious battle over the admissibility of evidence and whether the indictment itself was politically motivated.

Regardless of the outcome, the case promises to deepen the legal and political divide in Washington — and intensify scrutiny of both the Biden-era legal actions against Trump and the Trump administration’s aggressive efforts to hold his adversaries accountable.