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. Specifically, she is accused of falsely claiming the property was her primary residence when it was intended as an investment property. James has denied the allegations and is scheduled to be arraigned on October 24, 2025.
In April 2025, 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. The referral alleged that James misrepresented information in order to obtain government assistance and more favorable mortgage terms.[1] 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.[2][3][4] James denied the allegations, calling them "baseless" and politically motivated.[1]
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.[5] 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.[6] A special prosecutor was also appointed to examine her real estate transactions.[6]
By September 2025, federal prosecutors in Virginia reportedly found insufficient evidence to bring charges. Following this, the U.S. Attorney for the Eastern District of Virginia, Erik Siebert, resigned after Trump administration officials reportedly signaled an intent to replace him.[7][8] Elizabeth Yusi, another prosecutor in the district, also reportedly found no probable cause to pursue charges.[9][10] 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.[11]
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.[12][13]
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.[12][13]
James has denied the charges, describing them as politically motivated.[1][14]
Reactions
New York Governor Kathy Hochul condemned the indictment, calling it politically motivated.[15] 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.[16] 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.[17]
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