New York Attorney General Letitia James, a prominent critic of President Donald Trump, has been charged with bank fraud and making false statements to a lending institution, according to the U.S. Justice Department. Lindsey Halligan, the U.S. attorney for the Eastern District of Virginia, announced the indictment, emphasizing the seriousness of the alleged criminal acts and breach of public trust. If convicted, James could face up to 30 years in prison for each count, with the sentencing left to a judge’s discretion.
In response to the charges, James condemned the indictment as part of the president’s attempt to misuse the justice system for political vendettas. Trump, who has frequently targeted James on social media and in political gatherings, has faced legal challenges since his first term concluded in 2021. Governor Kathy Hochul of New York criticized the use of the Justice Department to retaliate against those holding the powerful accountable.
The indictment of James follows the recent indictment of former FBI director James Comey on charges of making false statements and obstructing a congressional investigation. Comey, who pleaded not guilty, has been a target of Trump’s criticism for his handling of the FBI investigation into Russia’s involvement with Trump’s 2016 campaign. The charges against James and Comey were brought by Halligan, who assumed the role of the top federal prosecutor in Alexandria, Va., following the resignation of her predecessor Erik Siebert.
James, known for her legal actions against the Trump administration, previously pursued a civil fraud case that resulted in a significant penalty against Trump for overstating his net worth to lenders. The penalty was later reduced by a New York appeals court, but the finding of fraud against Trump was upheld.
The Justice Department’s investigation into James stemmed from allegations by Federal Housing Finance Agency Director William Pulte, accusing her of falsifying records to secure favorable loans for properties in Virginia and New York. James’s lawyer, Abbe Lowell, clarified that she had mistakenly indicated a property as her primary residence in a mortgage application, with the understanding that it was not the case. The Justice Department has also initiated mortgage fraud probes into other officials, including Congressman Adam Schiff and Federal Reserve Board member Lisa Cook.
While Schiff and Cook have not been charged with any crimes and deny any wrongdoing, the investigation raises questions about the lenders’ considerations regarding the intended use of the properties in determining mortgage rates.
