Letitia James denies mortgage fraud allegations in massive criminal case

 October 27, 2025

New York Attorney General Letitia James (D) has found herself in the crosshairs of a federal mortgage fraud case, pleading not guilty to some serious charges.

The Hill reported that James, a longtime thorn in President Trump’s side, is accused of bank fraud and making false statements to snag favorable loan terms on a Virginia property, only to face arraignment last Friday in Norfolk, Va., with a trial set for January 26.

Let’s rewind to 2020, when James allegedly purchased a home in Norfolk, claiming it as a secondary residence on mortgage documents, per the indictment.

Instead of using it as a personal getaway, prosecutors say she rented it out to a family of three, a move that reportedly saved her nearly $19,000 in loan perks.

The tip-off came from Federal Housing Finance Agency Director Bill Pulte, who filed a criminal referral in April, apparently not limiting his scrutiny to James alone.

Pulte has also targeted Sen. Adam Schiff (D-Calif.) with similar mortgage fraud claims and Federal Reserve board member Lisa Cook, suggesting a broader net of allegations.

Political Tensions Fuel Controversy

Now, let’s talk context—James has a well-documented history of clashing with Trump, securing a massive judgment against his business empire last year for civil fraud, though an appeals court later axed the penalty.

Fast forward to September 20, when Trump took to Truth Social, publicly pressing Attorney General Pam Bondi to go after political foes like James and Schiff, a post later revealed to be meant as a private message.

“We can’t delay any longer, it’s killing our reputation and credibility,” Trump wrote, clearly frustrated, though one has to wonder if such public calls for prosecution cross a line into political vendettas.

The timing couldn’t be more eyebrow-raising—James’s indictment came just weeks after Trump’s post, under the watch of interim U.S. Attorney Lindsey Halligan, a Trump-selected former White House aide.

Halligan, who stepped in after the prior prosecutor resigned amid pressure to target Trump’s adversaries, is also handling a parallel case against former FBI Director James Comey, who pleaded not guilty to separate charges days before James.

James didn’t mince words outside the courthouse, declaring, “This case is about a justice system which has been used as a tool of revenge … and a weapon against those individuals who simply did their job and who stood up for the rule of law."

Defense Motions and Broader Implications

Her defiance is palpable, and it’s no surprise she’s signaled plans to file a motion to dismiss, mirroring Comey’s argument that Halligan’s appointment and the prosecution itself smack of selective targeting.

While James stands firm against what she sees as a politicized attack, one can’t help but question whether the justice system is being stretched into a battlefield for personal scores, a concern that resonates with many who value fairness over factionalism.

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