On October 9, 2025, Letitia James, the attorney general of New York, was indicted by a federal grand jury in Virginia on two counts: one charge of bank fraud and one charge of making false statements to a financial institution. The charges stem from allegations that James misrepresented the nature of a property she purchased in Norfolk, Virginia, in 2020, to secure more favorable loan terms. James has denied the allegations and pleaded not guilty when arraigned on October 24, 2025. The trial is scheduled to begin on January 26, 2026. In addition to this, the prosecution is being described by many in political circles as politically motivated, since she previously sued Trump, where the monetary judgement was thrown out by Appeals.
The indictment was brought against James following extended calls by President Donald Trump to pursue multiple political opponents, including James.[1][2] Career prosecutors who previously handled the case believed evidence against James was insufficient to bring charges, and were subsequently fired.[3][4] The case against James was brought by Lindsay Halligan, one of President Trump's former personal attorneys, who he hand-picked to be the new interim U.S. Attorney for the Eastern District of Virginia.[5][6]
Background
In April 2025, Bill Pulte, President Donald Trump's pick to head the Federal Housing Finance Agency (FHFA), referred Letitia James, attorney general of New York, to the United States Department of Justice (DOJ) for possible criminal prosecution. At the time, Trump had for an extended period called for criminal procedures against James, as well as other political opponents.[1][2] The referral alleged that James misrepresented information in order to obtain government assistance and more favorable mortgage terms.[7] The claims included misrepresenting an investment property as her primary residence, misrepresenting the number of units in a property, and misrepresenting her father as her spouse.[8][9][10] James denied the allegations, calling them "baseless" and politically motivated.[7]
In May 2025, the FBI opened a formal criminal investigation into the mortgage fraud claims. Her lawyer stated that any inaccuracies on loan documents were minor errors and presented alternative property deeds to support her position.[11] In early August, the DOJ escalated its investigation by opening a civil rights inquiry into James’s office concerning its actions in a separate New York business fraud lawsuit against the Trump Organization.[12] A special prosecutor was also appointed to examine her real estate transactions.[12]
By September 2025, federal prosecutors in Virginia reportedly found insufficient evidence to bring charges.[13][1] Following this development, the U.S. Attorney for the Eastern District of Virginia, Erik Siebert, stepped down after Trump administration officials reportedly signaled an intent to replace him, with President Trump saying "I want him out" one day prior to Siebert's resignation.[4][14][13] Within days of Siebert's resignation, Trump appointed one of his former personal attorneys, Lindsey Halligan, as the interim U.S. Attorney for the district.[5] Elizabeth Yusi, another prosecutor in the district, also reportedly found no probable cause to pursue charges, and authored an internal memo explaining the lack of evidence in the case.[15][16][17] It was alleged that Yusi had sent investigative files related to the James case to her own personal email account, in violation of DOJ policy. Yusi's attorney said that she had "never used her personal email account for any portion of any investigation".[17] Yusi was subsequently fired by Halligan in mid-October.[3]
In October 2025, James filed a request with the judge in charge of her case, seeking to bar federal prosecutors from speaking with the media, in order to ensure a fair trial. The filing came within days of a published report from Lawfare, which revealed that Halligan had reached out to a journalist who works with the outlet to share criticisms and complaints about their reporting on the case.[18][19][6] According to CBS News, James's attorney alleged that Halligan's conduct and comments about evidence in the case had "violated court rules and internal Justice Department policies that bar the sharing of grand jury information and restrict prosecutors' out-of-court statements".[20]
Indictment
On October 9, 2025, a federal grand jury in the United States District Court for the Eastern District of Virginia indicted Letitia James on one count of bank fraud under 18 U.S.C. § 1344 and one count of making false statements to a financial institution under 18 U.S.C. § 1014. The indictment alleges that James misrepresented the status of a property she purchased in order to obtain more favorable mortgage terms.[21][22]
The case has been assigned to Judge Jamar K. Walker. If convicted, James faces potential penalties including up to 30 years in prison per count, fines of up to $1 million per count, and possible forfeiture. Federal prosecutors emphasize that an indictment is merely an accusation and that James is presumed innocent until proven guilty.[21][22]
James has denied the charges, describing them as politically motivated.[7][23] At her arraignment on October 24, 2025, she pleaded not guilty. The trial is scheduled to begin on January 26, 2026.[24][25]
Two weeks after she was indicted, James' attorney, Abbe Lowell, filed several motions to dismiss; the motions allege that Halligan was unlawfully appointed, that the charges are inappropriate, and vindictive and selective prosecution. James Comey, in a separate prosecution, has also alleged that Halligan was unlawfully appointed.[24] Comey's motion was referred to Albert Diaz, the chief judge of the U.S. Court of Appeals for the Fourth Circuit, who assigned this part of his case to Cameron McGowan Currie, a senior judge in the U.S. District Court for the District of South Carolina; the assignment allows the motion to be heard in a district other than the one where Halligan serves as the interim U.S. Attorney.[26] The judge will consider Comey's and James' motions regarding Halligan together on November 13, 2025.[24]
Reactions
New York Governor Kathy Hochul condemned the indictment, calling it politically motivated.[27] Civil rights organizations, including the National Council of Negro Women, expressed concern about the broader implications of the indictment, particularly its impact on black women in leadership.[28] Legal experts cited by Associated Press questioned the strength of the allegations, noting that cases of this nature are rare without clear evidence of fraud or deliberate wrongdoing.[29]
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