New York Attorney General Letitia James, a prominent critic of President Donald Trump, has been indicted for alleged mortgage fraud, marking a dramatic escalation in what critics describe as the administration’s campaign against political opponents.
A grand jury in Alexandria, Virginia, returned the indictment on Thursday, charging James with bank fraud and making false statements to a financial institution, according to court records.
This latest indictment comes just weeks after former FBI Director James Comey was charged with obstruction and false statements, as Trump’s Justice Department intensifies scrutiny of high-profile Democrats. Investigations have also been opened into Senator Adam Schiff and Federal Reserve Governor Lisa Cook, though neither has been charged.
James, a Democrat, called the charges “a continuation of the president’s desperate weaponization of our justice system” and vowed to continue serving as New York’s top law enforcement officer.
“We will fight these baseless charges aggressively,” James said in a statement Thursday.
Administration officials, however, dismissed claims of political targeting, arguing that Democrats had “weaponized” the Justice Department first when Trump himself faced multiple prosecutions in 2023 — all of which were later dismissed.
Attorney General Pam Bondi wrote on X (formerly Twitter):
“One tier of justice for all Americans.”
Details of the Indictment
The indictment alleges that James lied on a mortgage application for a Norfolk, Virginia, property purchased in 2020 for about $137,000. Prosecutors claim she falsely stated she would use the home as a secondary residence when it was allegedly an investment property.
The supposed misrepresentation allowed her to secure a lower interest rate, saving roughly $19,000 over the loan’s lifetime.
“These charges represent intentional, criminal acts and serious breaches of public trust,” said Lindsey Halligan, the U.S. Attorney for the Eastern District of Virginia.
Both counts require prosecutors to prove intent to deceive, meaning the case could hinge on whether James knowingly provided false information. Her defense team maintains that any inaccuracies were clerical mistakes, not fraud.
James’ attorney, Abbe Lowell, said the case reflects Trump’s “personal vendetta” and vowed to contest it at every stage.
Her initial court appearance is scheduled for October 24 before U.S. District Judge Jamar Walker, who was appointed by President Joe Biden.
Political and Legal Fallout
Letitia James rose to national prominence for suing Donald Trump and the Trump Organization in 2022, accusing them of inflating asset values to obtain favorable loans. The case resulted in a $454.2 million civil penalty — later overturned on appeal, though the finding of fraud was upheld.
Trump has repeatedly attacked James at rallies and online, branding her a “radical partisan enemy.”
“This is what tyranny looks like,” said Senate Democratic Leader Chuck Schumer, denouncing Trump’s actions as an abuse of presidential power.
The indictment also follows Trump’s September 20 social media post in which he accused James, Comey, and Schiff of being “guilty as hell.”
Pattern of Retaliation Alleged
The case was brought by U.S. Attorney Lindsey Halligan, who was appointed shortly after Trump demanded her predecessor’s resignation on September 19. Sources familiar with the matter told Reuters that Halligan pursued the charges without support from career prosecutors, raising concerns of political interference.
Former FBI Director Comey, who pleaded not guilty last week, is expected to argue that Halligan’s appointment was unlawful, a move that could also impact James’ case.
Meanwhile, the Justice Department has opened additional mortgage fraud probes into Schiff and Cook — two officials who have clashed publicly with Trump in the past.
Critics say these investigations represent an unprecedented use of federal power against political rivals, while Trump allies argue it is “justice finally being served.”