New York Attorney General Letitia James has been indicted by a grand jury on charges of bank fraud and making false claims to a financial institution. The announcement was made by Acting U.S. Attorney for the Eastern District of Virginia Lindsey Halligan on Thursday evening. If convicted, James could face up to 60 years in prison and a $2 million fine.
The charges are a significant turn in the career of the high-profile Democrat, who previously prosecuted President Donald Trump in October 2023, accusing him of engaging in financial fraud through his "Trump Organization." James' case against President Trump was dismissed after his election to the presidency in November 2024.
During her campaign for attorney general, James made clear her intent to challenge President Trump, stating in a campaign aid that she would "sue" him and be a "real pain in the a**." These statements have come back to the fore as James now confronts her legal challenges.
The indictment concerns a property transaction from August 2020, when James co-purchased a house in Norfolk, Virginia, for approximately $137,000. The home was primarily financed with a $109,600 loan, which stipulated that the property was not to be used as a rental investment. However, prosecutors allege that despite James' declaration of the house as her "principal residence," it is her niece who resides there. This discrepancy lies at the heart of the indictment.
The New York Post reported that James' office has criticized the Trump administration, accusing it of weaponizing the government. They stated, "Donald Trump’s weaponization of the federal government continues to careen out of control — and now they are using cherry-picked information to attack the Attorney General."
James herself has commented on the indictment, framing it as a retaliatory move by President Trump for her efforts as attorney general. On social media, she remarked, "This is nothing more than a continuation of the president's desperate weaponization of our justice system."
The case is the latest example of a top political official in America facing serious legal troubles. It underscores the ongoing tensions between state-level officials and the federal government, particularly when the officials involved have previously engaged in legal battles with the President.
