Letitia James Charged in Virginia Mortgage Case

New York Attorney General Letitia James was indicted Thursday by a federal grand jury in Alexandria, Virginia, on charges of bank fraud and making false statements to a financial institution tied to a mortgage application for a Virginia property.

Letitia James, 66, a Democrat who previously led a high-profile civil fraud case against Donald Trump, called the prosecution politically motivated and vowed to fight the charges.

The indictment was pursued by Lindsey Halligan, the newly appointed U.S. attorney for the Eastern District of Virginia and a Trump ally, who personally presented the case to the grand jury after her predecessor resigned.

Vindictive prosecution

Critics within and outside the Justice Department have raised concerns about the appearance of politicization surrounding the charging decisions. James is expected to be arraigned on October 24.

The case arrives as part of a broader wave of actions against figures long targeted by Trump. Former FBI director James Comey pleaded not guilty this week to charges of making false statements to Congress and obstructing a congressional proceeding; his trial is set for January 5, and his legal team has signaled a motion to dismiss on grounds of vindictive or selective prosecution.

James’ prior civil suit against Trump resulted in a sweeping fraud judgment in New York state court. While an appeals court later removed the hundreds-of-millions financial penalty, it left the underlying liability intact, a backdrop that has intensified scrutiny of the new criminal case and the Justice Department’s independence.

The mortgage case centers on whether Letitia James misrepresented her intended use of a Norfolk-area property — a factor that can affect loan terms — and whether statements on her application constituted criminal falsehoods. Prosecutors allege the misstatements saved her money; James’ camp rejects the allegations and frames the prosecution as part of a retaliatory campaign.

If convicted, Letitia James could face significant penalties under federal banking statutes. The Justice Department and the New York attorney general’s office declined to comment beyond public statements, while legal analysts say early litigation will likely focus on discovery of internal decision-making and whether political pressure influenced charging