New York Attorney General Letitia James has been indicted on federal charges of bank fraud and making false claims regarding a property she owns in Norfolk, Virginia. The charges arise from allegations that she misrepresented how she would use the property to obtain favorable loan terms.
• Letitia James bought a three-bedroom house in Norfolk in August 2020 for $137,000 and has repeatedly classified it as an “investment” property in financial disclosures from 2020 to 2023.
• In her 2024 ethics filing, James changed the classification to “real property” and increased the estimated value from under $150,000 to between $150,000 and $250,000.
• Federal prosecutors accuse James of falsely claiming that she would use the home as a secondary residence when she applied for a $109,600 mortgage and agreed to terms preventing it from being rented out.
• Despite these claims, prosecutors allege she used the home as a rental property, which allowed her to obtain a lower mortgage rate, resulting in “ill-gotten gains” of around $18,933 over the loan's life.
• James did not report any income from the Norfolk property in her financial disclosures between 2021-2024, even though earlier filings indicated income between $1,000 and $5,000 from the property.
• She also misrepresented the intended use on her homeowners’ insurance application, which designated the house as “owner occupied. ”
• If convicted, James could face up to 60 years in prison and fines totaling $2 million.
• Her initial court appearance is scheduled for October 24, 2025.
• Legal defense costs for James may reach up to $10 million, but she is reportedly seeking assistance from the Democratic Attorneys General Association instead of tapping into a state-funded legal defense fund.
Letitia James's legal troubles stem from serious allegations of fraud regarding property disclosures and mortgage applications. The outcome of her case could have significant implications for her career and finances, as well as draw attention to issues of ethics and accountability in public office.
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