Insider Letitia James fraud charge of $18,933 : NY Attorney general Letitia James In federal bank fraud and false statement charges indicted on 2020 Virginia property, arraignment is set, 24 October, 2025.
What she’s charged with
- Two counts: bank fraud and cause of action falsely representing oneself to a financial institution (18 U.S.C. §§ 1344, 1014).
- The accusations pertain to the purchase of a home in Norfolk, Virginia, in the year 2020. She is accused of representing the property as a second home to obtain good mortgage rates when in fact it was a rental house.
- Claims by prosecutors say that the misrepresentation saved her some $18,933 in interest.
Context & reactions
- It was personally presented to the grand jury by the U.S. Attorney of the Eastern District of Virginia, Lindsey Halligan.
- The Justice Department released an announcement of the indictment.
- Letitia James and the counsel that she has enlisted have protested that the indictment is politically motivated, and it is a service to take revenge on her on account of her prior legal claims against Donald Trump.
- Legal observers observe that in order to put James into jail, prosecutors have to have proved intent since they have to show that James was aware that he was supplying false information, and not that there were mistakes in the documents.
- Her arraignment is to be held on October 24, 2025 in Norfolk, Virginia.
What the statute proclaims and what can be penalties derived.
- Under the §1344 section of the U.S.C 18 (bank fraud), a defendant may be convicted to a maximum of 30 years per count.
- The punishment may consist of fines and imprisonment (also many years of imprisonment depending on the severity), as provided in 18 U.S.C. §1014 (false statements to a financial institution).
- An indictment is however just an accusation on record -it takes James to be innocent until proven guilty.
Summaries of the indictment; important parts.
- The press release issued by the U.S. Attorney of Eastern District of Virginia said that in case of conviction, Letitia James could serve up to 30 years of incarceration on each charge, could pay up to 1 million dollars on each charge, and might forfeit.
- The press release also establishes that the charges are bank fraud and false statements to a financial institution under federal law.
- In particular, the charges claim that James falsely declared on a mortgage application one of the properties she bought in Virginia (2020) as a second residence to obtain more preferable terms when, in fact, they were rented out by the prosecutors.
- According to the Democracy Docket summary of the indictment, the prosecutors accuse her of knowingly executing and trying to execute a scheme and artifice to defraud by falsely representing the occupancy or use of the property.
- The indictment seems to have been indorsed by a grand jury at Alexandria, Virginia.
Procedural and contextual information.
- The case was under initial sealing, i.e. when it was first reported, the information was restricted.
- James is to be taken to court (arraignment) on October 24, 2025, in Norfolk, Virginia.
- In the Justice Department press release, it is pointed out that an indictment is only an arrest and thus James is innocent until proven guilty.
- The legal observers remark that the burden of proving such charges is usually determined by proving intent, that the defendant actually knowingly falsely made statements (not merely made mistakes or misunderstandings).
- Background: Federal Housing Finance Agency (FHFA) had reported James to DOJ on claims related to mortgage applications in properties in Virginia and Brooklyn which she possibly may have falsely claimed to be her primary residence to secure better loan terms or falsely claimed the number of units.
- Prior to the process, the Justice Department had already experienced internal opposition, as had career prosecutors, with some of them being reportedly unsure that there was enough evidence to proceed to charge.
- What is interesting about the time this indictment was announced is that it is shortly after another high profile case in Virginia ( former FBI Director James Comey was indicted weeks before).
DocumentCloud Letitia James Federal Indictment.
It was a federal grand jury in Alexandria, Virginia which on October 9, 2025, returned this indictment. It counts two felony charges against James:
- Bank fraud
- Misrepresentation to a financial institution.
The accusations are based on a 2020 real-estate acquisition in Norfolk, Virginia, related to which James is accused of falsely stating the purpose of the property to get more advantageous borrowing conditions. According to the prosecutors, she rented the property, which was not the case as she intended to use the property as a second-hand dwelling. This fraud was supposed to lead to a net profit of about $18,933.
James has refuted the claims terming them as political. She will stand in court in October 24, 2025, in Norfolk, Virginia.
Professional and Legal Service.
- Public Defender: James started by working as a public defender at the Legal Aid Society where she became a lawyer and represented people who could not hire their own counsel.
- Assistant Attorney General: She was the first Assistant Attorney General over the Brooklyn regional office and she was concerned with consumer protection and predatory lending.
- New York City Council (2004-2013): As a member of the Brooklyn 35 th district, James served as a chair of Economic Development and Sanitation Committee which promoted the right to housing and environmental justice.
- Public Advocate (2014-2018): She was the first woman of color to be elected to the citywide office in New York City and she was a watchdog to the city agencies and championed the rights of vulnerable groups.
- Attorney General of New York (2019-present): James was elected to be the first African American and first woman to have statewide office in New York in 2018. Her administration has been characterized by major court battles such as a civil law suit against former President Donald Trump and the attempt to make the National Rifle Association answer to financial misconduct.
Conclusion:
Federally indicted is New York Attorney General Letitia James, who was charged with two criminal counts, bank fraud and making false statements, over a real estate acquisition in Virginia in 2020. She is accused by the prosecutors of falsely listing the property as a second home in order to get better mortgage conditions when instead she rented it out, estimated to make approximately $18,933.
James refutes the charges citing the allegations as political. She is cleared to stand trial awaiting confirmation of guilt, and she is set to be arraigned on October 24, 2025 in Norfolk, Virginia.