Letitia James’s indictment in Virginia: What are the mortgage fraud claims and allegations against her

New York State Attorney General Letitia James was indicted by a federal grand jury in Virginia on Thursday, The New York Post reported, citing sources. The indictment follows allegations from federal housing regulator Bill Pulte that James “falsified records” in 2023 to obtain preferential home loan terms for a property in Norfolk, Virginia, which he claimed was his “principal residence.”

Political Context: James’ high-profile cases and Trump connections

James is one of several Democratic state attorneys general who have filed suit to block the Trump administration’s actions. He is best known for leading the 2022 civil fraud lawsuit against Trump and his family’s real estate company; That case resulted in a $454.2 million penalty after the judge found that Trump fraudulently overstated his net worth to mislead lenders.

In August, a New York state appeals court threw out the fine of more than $500 million with interest, but upheld the trial judge’s finding that Trump was liable for the fraud. According to Al Jazeera, both Trump’s and James’ offices are appealing to the state’s highest court. Trump has denied wrongdoing and accused James’ office of pursuing the case against him for political reasons.

Details of the charges against Letitia James

According to the indictment reviewed by CNN, James claimed in mortgage documents that a house he purchased in Norfolk would become his second residence, allowing him to secure loan terms not available for investment properties. Prosecutors allege James did not use the home himself, but instead rented it to a family of three. They claim he mistakenly stated on his loan applications that the property would be a second home, knowing it would be used as an investment property.

Mortgage fraud investigation and James’ defense

The investigation focuses on a 2023 mortgage for a property in Norfolk, Virginia. James’ attorneys filed documents with the Justice Department in April to dispute the allegations, arguing there was no fraud. They acknowledged that a document in the mortgage application “erroneously” stated that the property would be James’ primary residence. However, they presented other documents showing the contrary.

“This property will NOT be my primary residence,” James wrote in an email to the lender, according to CNN. James also checked a box in another document stating that the property would not be his primary residence.