Letitia James speaks during an election night watch party for Zohran Mamdani in New York on June 25, 2025. (Photo: Julius Constantine Motal/The Guardian)
Letitia James, New York’s attorney general, has been charged with bank fraud following an indictment from a federal grand jury in Virginia. The move marks the latest escalation in Donald Trump’s efforts to pursue his political rivals through the U.S. justice system.
According to a source familiar with the case, Lindsey Halligan, the U.S. attorney for the Eastern District of Virginia, personally presented the evidence to the grand jury on Thursday — an unusual step for someone in her position.
James Denounces Charges as Retaliation
James released a recorded video statement shortly after the indictment, calling the charges “baseless” and politically motivated.
“This is nothing more than a continuation of the president’s desperate weaponization of our justice system,” she said. “He is forcing federal law enforcement agencies to do his bidding, all because I did my job as the New York state attorney general.”
She accused Trump of seeking revenge for her past actions against him, describing the charges as “a grave violation of our constitutional order.”
Trump Allies Drive the Push
Halligan was appointed to her role only a month ago after Trump reportedly grew impatient with the slow pace of investigations into his political opponents.
In a written statement, Halligan said, “No one is above the law. The charges as alleged in this case represent intentional, criminal acts and tremendous breaches of the public’s trust. The facts and the law in this case are clear.”
The indictment comes two weeks after Halligan also filed charges against James Comey, the former FBI director, despite internal memos suggesting the evidence did not justify prosecution. Comey has since pleaded not guilty.
Trump has made no secret of his intent to target his critics. In a September post on Truth Social, he mentioned several names, including James, and called for immediate legal action against them. “We can’t delay any longer, it’s killing our reputation and credibility,” he wrote.
Focus of the Allegations
Prosecutors claim the investigation centres on a real estate transaction involving James’s niece. They allege that James misrepresented a home purchase in Virginia by checking a box that indicated it would serve as her primary residence — a detail that could qualify for better mortgage rates.
However, in separate emails and mortgage documents, James reportedly stated she had no plans to live there full-time. A career prosecutor, Elizabeth Yusi, had concluded that there was no probable cause for mortgage fraud, but her findings were overruled by Halligan’s office.
Fallout Inside the Justice Department
The U.S. attorney’s office in Virginia has seen upheaval in recent weeks. Halligan’s predecessor, Erik Siebert, was dismissed for not bringing charges against Comey and James. Two senior deputies, Maya Song and Michael Ben’Ary, were also removed, the latter after facing online attacks from Trump supporters.
Trump ally William Pulte, head of the Federal Housing Finance Agency, has reportedly submitted multiple criminal referrals against Trump’s critics, including James, California Senator Adam Schiff, and Federal Reserve Governor Lisa Cook.
James and Trump’s History
James has been one of Trump’s most vocal opponents. She led a civil fraud lawsuit that resulted in a $500 million judgment against him and his company — a ruling later overturned by an appeals court.
Her indictment marks the latest chapter in a deepening political feud that now stretches from courtrooms to the heart of the U.S. Justice Department.
