WASHINGTON (AP) — New York Attorney General Letitia James was charged Thursday as part of a mortgage fraud investigation aggressively pushed by the Trump administration, becoming the latest foe of the president to be prosecuted by his Justice Department, a person familiar with the matter told The Associated Press.
James, who infuriated President Donald Trump by suing him and his company for fraud in a case that played out as he was running for office, was indicted on a single count of bank fraud following a presentation to a grand jury in Virginia by a prosecutor who was hastily appointed last month amid Trump administration pressure to deliver criminal cases against his adversaries, the person said. The person spoke on the condition of anonymity because they were not authorized to discuss the matter.
James’ office had no immediate comment Thursday. Her lawyers have vigorously denied any allegations and characterized the investigation as an act of political revenge.
The indictment, two weeks after a separate criminal case charging with lying to Congress, is the latest indication of the Trump administration’s norm-busting determination to use the law enforcement powers of the Justice Department to and public figures who once investigated him.
The James case remained under seal Thursday, making it impossible to assess what evidence prosecutors have. But as was the case with the Comey charges, the prosecution followed a strikingly unconventional route. The Trump administration two weeks ago pushed out Erik Siebert, the veteran prosecutor who had overseen the investigation for months but had resisted pressure to file a case, and replaced him with Lindsey Halligan, a White House aide who was once Trump’s personal lawyer but who has never worked as a federal prosecutor.
Halligan presented the case to the grand jury herself, as she did in the case against Comey, according to the person familiar with the matter.
Trump has been advocating charging James for months, posting on social media without citing any evidence that she’s “guilty as hell” and telling reporters at the White House, “It looks to me like she’s really guilty of something, but I really don’t know.”
Her lawyer has accused the Justice Department of concocting a bogus criminal case to settle Trump’s personal vendetta against James, who last year against Trump and his companies in a lawsuit alleging he lied to banks and others about the value of his assets.
The Justice Department has also been investigating mortgage-related allegations against Federal Reserve board member Lisa Cook, using the probe to demand her ouster, and Sen. Adam Schiff, D-Calif., whose lawyer called the allegations against him “transparently false, stale, and long debunked.”
But James is a particularly personal target. As attorney general, she dozens of times and oversaw a lawsuit accusing him of defrauding banks by dramatically overstating the value of his real estate holdings on financial statements.
An appeals court , which had ballooned to more than $500 million with interest, but upheld a lower court’s finding that Trump had committed fraud.
The Justice Department probe began after Federal Housing Finance Agency Director William Pulte sent a letter in April to Attorney General Pam Bondi, asking her to investigate James over her role in the 2023 purchase of a house in Norfolk, Virginia.
In seeking the investigation, Pulte cited a two-page power-of-attorney form that James signed on Aug. 17, 2023, which states, “I intend to occupy this property as my principal residence.” He speculated that claiming the house as her primary residence might have allowed James to avoid higher interest rates that often apply to second homes.
James’ lawyer, Abbe Lowell, said the Democrat never misled anyone. James has said that she made an error while filling out a form related to the home purchase, but quickly rectified it and didn’t deceive the lender.
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