Federal grand jury indicts Letitia James on fraud and false statement charges

New York Attorney General Letitia James was formally indicted on Thursday by a federal grand jury in Virginia on two serious felonies: bank fraud and false statement to a financial institution. According to the documentation filed with the court, federal authorities indicate that James provided false information to obtain preferential financial conditions in the purchase of a property in the state of Virginia in 2023.

James' first appearance in court is scheduled for Oct. 24 in Norfolk, Virginia.

Investigation stemming from federal complaint

The investigation was launched in April after Bill Pulte, president of the Federal Housing Finance Agency (FHFA), sent a letter to the Department of Justice alerting it to possible fraud. Pulte accused James of falsely declaring a home located in Norfolk, Virginia, as her principal residence, which would have allowed her to obtain lower mortgage rates.

As part of the evidence, Pulte introduced a power of attorney dated August 17, 2023, signed by James, stating her intention to establish residency in the questioned home.

James has denied having committed fraud and maintains that she bought the property together with her niece, who, according to her version, is the main resident of the property.

Letitia James responds

After learning of the federal indictment against her, James published a message in which she stated that the case responds to a "desperate weaponization of our justice system" by President Trump. She alleged that the charges are politically motivated and part of an attempt by the president to exact revenge for the legal actions she initiated against him while she was attorney general.

James claimed that Trump is "forcing federal law enforcement agencies to do his bidding". She denounced that the removal of a prosecutor who initially refused to file charges, and his replacement by another "loyal not to the law, but to the President," constitutes, according to her, a "grave violation of our constitutional order." James concluded by assuring that she will not resign or change her position.