New York Attorney General Letitia James will appear in federal court on Friday to face mortgage fraud charges.
James, a Democrat who has long been a vocal critic of President Donald Trump and his administration, was indicted earlier this month for bank fraud and making false statements in connection with a 2020 home purchase in Norfolk, Virginia. The charges were filed shortly after the Trump administration removed the prosecutor previously overseeing the case, and the president publicly urged the Justice Department to pursue investigations against his opponents.
Maintaining her innocence, James denounced the indictment as “nothing more than a continuation of the president’s desperate weaponization of our justice system.”
According to court filings, the case centers on James’ purchase of a modest property in Norfolk. During the transaction, she signed a “second home rider,” agreeing to use the property primarily for her personal enjoyment for at least one year. Federal prosecutors allege, however, that she rented the home to a family of three instead, which allowed her to secure lower interest rates reserved for personal residences rather than investment properties.
James became a frequent target of Trump’s attacks after she won a landmark civil fraud case against him and his businesses. That case resulted in a judgment exceeding $500 million before an appeals court later reversed the penalty but upheld the court’s determination that Trump had engaged in fraud.
Her indictment was brought forward under Lindsey Halligan, a newly appointed U.S. attorney for the Eastern District of Virginia who previously worked as a Trump lawyer and White House aide. Halligan, who had never served as a federal prosecutor before, presented the case to the grand jury herself after her predecessor, Erik Siebert, resigned amid reported pressure from the Trump administration to charge James.
On Thursday, James’ legal team reportedly filed a motion asking the court to bar prosecutors from sharing details of the case with the media after revelations that Halligan had communicated with a reporter from Lawfare via an encrypted messaging platform. The reporter later published their exchange, which James’ attorneys described as “a stunning disclosure of internal government information.”
“It has been reported that Ms. Halligan has no prosecutorial experience whatsoever,” James’ lawyers said. “But all federal prosecutors are required to know and follow the rules governing their conduct from their first day on the job, and so any lack of experience cannot excuse their violation.”
Her defense team also asked that all communications between government officials and members of the media be preserved and that no records related to the prosecution be deleted.
Separately, James’ lawyers signaled plans to challenge Halligan’s appointment, echoing a similar motion filed this week by former FBI Director James Comey, who is also facing charges brought by Halligan.
The indictment against James follows a series of legal actions targeting Trump’s critics. Last week, John Bolton, Trump’s former national security adviser, pleaded not guilty to charges of mishandling classified information. Meanwhile, the Justice Department is continuing separate investigations into Sen. Adam Schiff and Federal Reserve Board member Lisa Cook, both Democrats and frequent Trump detractors.
