New York Attorney General Letitia James, who has built much of her political career attacking President Donald Trump, has been indicted on a bank fraud charge by a federal grand jury in Virginia.
The grand jury in the Eastern District of Virginia returned the indictment Thursday.
Earlier this year, the Justice Department confirmed an investigation into James over alleged mortgage fraud.
The probe centers on claims she misrepresented property records and loan applications to secure more favorable financing.
According to a letter from Federal Housing Finance Director Bill Pulte, James allegedly made false statements on multiple documents. That includes:
- Listing a Virginia property as her primary residence when it was not.
- Filing Brooklyn records showing her multifamily building had five units instead of four.
- Submitting a mortgage application claiming she was her father’s spouse.
James has been under scrutiny for at least one suspected instance of misrepresenting an investment property as her primary or secondary residence, a move that could save thousands in interest rates.
The case is being handled by U.S. Attorney Lindsey Halligan, a Trump appointee.
Halligan replaced Erik Siebert, who was ousted after reportedly showing reluctance to pursue cases against James and former FBI Director James Comey. Both are longtime Trump critics.
James Responds
James, who last year won a controversial civil fraud case against Trump and the Trump Organization, has denied wrongdoing.
In a lengthy statement Thursday about the indictment, she disputed the charge and alleged strong political motivations:
“This is nothing more than a continuation of the president’s desperate weaponization of our justice system. He is forcing federal law enforcement agencies to do his bidding, all because I did my job as the New York State Attorney General.
“These charges are baseless, and the president’s own public statements make clear that his only goal is political retribution at any cost. The president’s actions are a grave violation of our Constitutional order and have drawn sharp criticism from members of both parties.
“His decision to fire a United States Attorney who refused to bring charges against me — and replace them with someone who is blindly loyal not to the law, but to the president — is antithetical to the bedrock principles of our country. This is the time for leaders on both sides of the aisle to speak out against this blatant perversion of our system of justice.
“I stand strongly behind my office’s litigation against the Trump Organization. We conducted a two-year investigation based on the facts and evidence — not politics. Judges have upheld the trial court’s finding that Donald Trump, his company, and his two sons are liable for fraud.
“I am a proud woman of faith, and I know that faith and fear cannot share the same space. And so today I am not fearful, I am fearless, and as my faith teaches me, no weapon formed against me shall prosper. We will fight these baseless charges aggressively, and my office will continue to fiercely protect New Yorkers and their rights. And I will continue to do my job.”
Image as a Corruption Fighter
The allegations cut directly against the public image James has tried to build as a corruption fighter.
Instead, prosecutors now accuse her of personally engaging in deception for financial gain.
Trump blasted James’ conduct, posting on social media last month:
“Nothing is being done. What about Comey, Adam ‘Shifty’ Schiff, and Leticia??? … They impeached me twice, and indicted me (5 times!), OVER NOTHING. JUSTICE MUST BE SERVED, NOW!!!”
James has spent years making Trump’s businesses and family the centerpiece of her political crusade.
In 2022, she filed a civil lawsuit accusing Trump, his children and the Trump Organization of inflating assets to obtain loans and insurance. The case was widely seen by conservatives as a political show trial, designed to cripple Trump financially as he prepared for another White House run.
In early 2024, a New York judge sided with James and slapped Trump with a staggering $450 million penalty, along with restrictions on his ability to do business in the state.
Trump’s sons Donald Jr. and Eric were also punished, temporarily barred from serving as company officers. James celebrated the ruling as a “landmark victory.”
But the victory didn’t last.
In August 2025, a New York appeals court tossed out the massive fine, blasting it as excessive and politically motivated.
While the court let stand a narrow fraud finding, the crushing penalty was erased. James, undeterred, vowed to appeal.
Her campaign against Trump didn’t stop there. James repeatedly sued the Trump administration on policy grounds, targeting tariffs, immigration measures, and even accusing Trump officials of “illegally” cutting NIH research funds.
Each case served to elevate her profile as one of Trump’s most aggressive adversaries.
For years, James painted herself as Trump’s tormentor-in-chief. But with her own indictment now hanging over her, critics say the tables have turned.
Now, the prosecutor who branded herself as the scourge of Donald Trump is suddenly facing the same kind of legal peril she tried to unleash on him.
