Letitia James Indicted in Norfolk Mortgage Fraud Case

NORFOLK, Va. — New York Attorney General Letitia James faces federal charges in a mortgage fraud case involving her property in Norfolk. The indictment claims she misrepresented her home as a second residence instead of a rental to obtain more favorable loan terms, potentially saving her thousands of dollars.

The investigation, launched by the Justice Department, is tied to claims that James filed for a loan on the Norfolk home under false pretenses. According to documents, she purchased the three-bedroom house for $137,000 in August 2020 and claimed it was for personal use when applying for a mortgage.

Federal prosecutors allege that by designating the property as a second home, James secured a mortgage that offered better rates than she would have received as an investment property owner. The total savings from this misrepresentation are estimated at roughly $18,933.

James has denied any wrongdoing and criticized the charges as politically motivated. “This is nothing more than a continuation of the president’s desperate weaponization of the justice system,” she stated, indicating that the case reflects broader political tensions.

Former U.S. Attorney Erik Siebert, who previously oversaw the investigation, did not bring charges against James, citing insufficient evidence. He was replaced by Lindsey Halligan, a former aide to President Donald Trump, shortly before the indictment was filed.

James is scheduled to appear in federal court on October 24. If convicted on both counts, she could face up to 60 years in prison and fines totaling $2 million.

Legal analysts have noted that while the monetary stakes may seem low, significant taxpayer dollars are at risk in pursuing this high-profile trial. Local political expert Jesse Richman emphasized that the implications of this case extend beyond the alleged fraud.

Neighbors of the property reported not having seen James in the area, focusing attention on the family’s presence living in the home.