Grand Jury Indicts N.Y. Attorney General Letitia James — Longtime Trump Adversary — on Bank Fraud Charges
A federal grand jury in Virginia has indicted New York Attorney General Letitia James, a Democrat widely known for her politically charged battles with President Donald J. Trump, on one count of bank fraud and one count of making false statements to a financial institution.
According to the indictment, James allegedly misrepresented a Norfolk, Virginia, home as her secondary residence to obtain preferential mortgage terms and falsely claimed she had rented the property to a family of three.
James — who spearheaded the civil case against President Trump before his return to the White House — denied all wrongdoing, dismissing the indictment as politically motivated retaliation.
“These charges are baseless, and the president’s own public statements make clear that his only goal is political retribution at any cost," James said in a statement. "The president’s actions are a grave violation of our Constitutional order and have drawn sharp criticism from members of both parties.”
Background of the Case
In August, then–Attorney General Pam Bondi appointed a special counsel to investigate potential mortgage fraud involving James. The referral came from Federal Housing Finance Agency Director Bill Pulte, who alleged that James had made false declarations on loan documents.
While initial investigators reportedly doubted the evidence was strong enough for conviction, the case gained new momentum after President Trump appointed Lindsey Halligan, one of his personal attorneys, as acting U.S. attorney for the Eastern District of Virginia.
Halligan — a loyal ally of the President — personally presented the case to the grand jury, breaking with Department of Justice tradition by doing so without a prosecutorial team. She previously secured the September indictment of former FBI Director James Comey on charges of lying to Congress and obstructing a congressional proceeding.
Trump’s Push for Accountability
President Trump has made no secret of his frustration with what he calls years of politically motivated investigations against him. On Truth Social, he reiterated his stance that those who “abused power” to target his administration must finally be held accountable.
“We can’t delay any longer, it’s killing our reputation and credibility. They impeached me twice, and indicted me (5 times!), OVER NOTHING. JUSTICE MUST BE SERVED, NOW!!!” the President wrote on Truth Social days before Comey’s indictment.
In addition to Comey and James, Trump has called for legal scrutiny into Sen. Adam Schiff, D-Calif., for alleged misuse of congressional authority during the Russia probe.
Reactions and Legal Outlook
Democrats have swiftly condemned the indictment, accusing the administration of political retaliation. New York Gov. Kathy Hochul posted on X, “Americans are witnessing nothing less than the weaponization of the Justice Department to punish those who hold the powerful accountable.”
Legal experts, however, caution that the threshold for a grand jury indictment is far lower than for a conviction at trial. Former U.S. Attorney Carol Lam told NBC News that prosecutors should proceed only when the evidence is robust enough to sustain a conviction.
“It would be interesting to see how many grand jurors actually voted for the indictment,” Lam noted. “In the case of Jim Comey, it was 14 out of 23... if I had even one or two grand jurors expressing concern, I would be very, very concerned.”
The case has been assigned to U.S. District Judge Jamar K. Walker, a Biden appointee, setting the stage for another politically charged legal battle that will test the limits of justice and accountability in the post-2025 era.