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Trump-Appointed Prosecutor Indicts NY Attorney General James on Mortgage Fraud Charges
In a dramatic escalation of a years-long feud, New York Attorney General Letitia James faces federal mortgage fraud charges in what her legal team describes as politically motivated prosecution orchestrated by President Donald Trump.
The indictment, filed October 9 in the Eastern District of Virginia, alleges James committed bank fraud and made false statements to a financial institution when purchasing a $137,000 house in Norfolk, Virginia in 2020. According to prosecutors, James told mortgage brokers the property would serve as a secondary residence to secure a favorable 3% interest rate, but instead used it as a rental property.
If convicted, James could face up to 30 years in prison per count and fines of up to $1 million, though actual sentences for federal crimes typically fall well below maximum penalties.
James immediately called the charges “baseless” in a video statement posted to social media. “The president’s own public statements make clear that his only goal is political retribution at any cost,” she said.
The circumstances surrounding the indictment have raised significant questions about political influence. The case was brought by Lindsey Halligan, a former personal lawyer for Trump who was appointed interim U.S. attorney for the Eastern District of Virginia in September. According to ABC News, Halligan replaced her predecessor, Erik Seibert, after he was pushed out for failing to file charges against James following a five-month investigation.
Notably, Halligan has no prior prosecutorial experience. She previously advised Trump following the FBI’s seizure of classified documents at Mar-a-Lago in 2022 and worked as a White House special assistant.
The timing of the indictment follows a September 20 post from Trump on Truth Social that appeared to demand action against James, writing “JUSTICE MUST BE SERVED, NOW!!!”
According to the New York Times, the Norfolk property was purchased for James’ great-niece, Nakia Thompson, and her children. Thompson reportedly testified to a grand jury that she had “lived in the house for years and that she did not pay rent.” However, the indictment notes that James filed tax forms treating the property as “rental real estate” and reported “thousand(s) of dollars in rents received.”
New York state financial disclosure statements show James reported $1,000 to $5,000 in income from the “investment real property” in 2020, but did not report income in subsequent years. She consistently listed the property as an “investment” valued at $100,000 to $150,000 from 2020 to 2023.
James’ attorney, Abbe Lowell, issued a statement saying, “We are deeply concerned that this case is driven by President Trump’s desire for revenge. When a President can publicly direct charges to be filed against someone — when it was reported that career attorneys concluded none were warranted — it marks a serious attack on the rule of law.”
The conflict between Trump and James dates back to 2018 when she ran for attorney general promising to prosecute Trump for “defrauding Americans.” James’ subsequent investigation led to Trump’s conviction in a 2024 civil fraud case, resulting in a $450 million penalty that was later reduced by an appeals court.
Legal experts have questioned the substance of the case against James. Paul Schiff Berman, a law professor at George Washington University, told the Associated Press that such prosecutions are “very uncommon” without evidence of a pattern of malicious activity, actual harm to the bank, or connection to a larger fraudulent scheme.
James Kainen, a Fordham University law professor specializing in real estate and white-collar crime, called the indictment “disproportionate and inconsistent with established prosecutorial norms.”
“The claimed mortgage fraud alleges a maximum savings to Ms. James of about $18,933 and no loss to the bank,” Kainen explained. “By comparison, prosecutors overlooked potential mortgage fraud cases involving applicants who lied about thousands of dollars in income and then defaulted on hundreds of thousands of dollars of debt during the Great Recession.”
James is scheduled to make her initial court appearance on October 24.
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8 Comments
The indictment of a state attorney general by a federal prosecutor is a highly unusual and concerning development. I hope the courts can examine this case objectively and determine whether the charges have merit or are indeed politically driven.
This situation raises important questions about the independence of the justice system and the potential for abuse of power. I’m curious to see how the legal proceedings unfold and whether the evidence supports the claims made by prosecutors.
Regardless of one’s political leanings, the indictment of a state attorney general by a federal prosecutor should give us all pause. I hope the legal system can navigate this complex situation with impartiality and transparency.
If the charges against AG James are indeed politically motivated, that would be a troubling abuse of power. Mortgage fraud is a serious offense, but the timing and circumstances raise valid questions about the prosecutor’s true intentions.
I agree, the timing of these charges is highly suspicious given the ongoing feud between AG James and former President Trump. The public deserves a thorough, unbiased investigation to get to the truth of the matter.
As a concerned citizen, I’m following this case closely. Allegations of mortgage fraud are grave, but the political dynamics add an unsettling layer of complexity. I hope the legal process can uncover the facts without undue influence.
This is a concerning development. While the allegations against AG James are serious, the political implications are worrying. I hope the legal process unfolds transparently and impartially to determine the facts.
As someone interested in the integrity of our democratic institutions, I find this case deeply troubling. Mortgage fraud is a serious crime, but the political backdrop casts doubt on the motivations behind the prosecution. I hope the truth will come to light.