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James calls allegations over $109,600 mortgage baseless retribution, and a “continuation of the president’s desperate weaponization of our justice system.”
New York Attorney General Letitia James has been charged with felony bank fraud and making false statements to a financial institution in applying for a $109,600 mortgage she took out to buy a $137,000 home in Norfolk, Virginia 5 years ago.
A federal indictment filed Thursday alleges that James rented out the three-bedroom, one-bathroom home that she claimed would be a secondary residence. Claiming the home would be a second residence allowed James to secure a $3,288 seller credit and a better mortgage rate saving $17,837 over the life of the loan, the government alleges.
James, who last year won a civil fraud case against President Donald Trump, called the charges baseless and motivated solely by political retribution.
“This is nothing more than a continuation of the president’s desperate weaponization of our justice system,” James said in a statement. “He is forcing federal law enforcement agencies to do his bidding, all because I did my job as the New York State Attorney General.”
A copy of the indictment obtained by CNN was signed only by U.S. Attorney Lindsey Halligan — the Trump-appointed prosecutor who also provided the lone signature on a Sept. 25 indictment of former FBI Director James Comey.
U.S. Attorney Erik Siebert, who had been investigating allegations against James and Comey, resigned on Sept. 20, after Trump pressured Attorney General Pam Bondi to move forward with criminal cases against them, claiming on Truth Social, “They’re all guilty as hell.”
Another top Department of Justice prosecutor looking into the allegations against James, Elizabeth Yusi, has told colleagues she had not seen probable cause to charge James with mortgage fraud, MSNBC reported Monday.
Bill Pulte, the head of Fannie Mae and Freddie Mac’s federal regulator, has referred three Trump administration opponents — James, Democratic Sen. Adam Schiff, and Federal Reserve Governor Lisa Cook — to the Department of Justice, suggesting they falsified property records to secure more favorable mortgage terms.
All deny wrongdoing, and Schiff and Cook have yet to be charged. Trump is attempting to remove Cook from the Federal Reserve Board, but courts have ruled that she can continue to serve while she fights her dismissal in court. The Supreme Court is scheduled to hear oral arguments in January.
Last week the Federal Housing Finance Agency announced it had shut down Fannie Mae and Freddie Mac’s offices in New York “as a result of Letitia James’ corrupt and dangerous business practices in the state.”
The Norfolk home at the center of the case
The Norfolk, Virginia home at the center of fraud allegations against New York Attorney General Letitia James. Source: Google Street View.
The home at the center of the case against James was built in 1920, sold for $29,000 in 2010 and $114,800 in 2011, according to property records tracked by Zillow. It was listed for sale for $145,00 by its previous owners in 2018, who removed the listing twice before selling it for $137,000 in August, 2020 — $2,000 less than the asking price.
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