Letitia James Indicted on Bank Fraud Charges in Norfolk Real Estate Case

NORFOLK, Va. — New York Attorney General Letitia James has been indicted on federal charges of bank fraud and making false statements to a financial institution regarding a mortgage loan for a property in Norfolk, Virginia. The indictment was issued by a grand jury on Thursday and relates to allegations that James misrepresented her intention for the house when obtaining the loan.

James purchased the three-bedroom home in August 2020 for $137,000. Prosecutors claim she falsely declared it as a secondary residence to secure a $109,600 mortgage from OVM Financial. The indictment states that this misrepresentation allowed James to obtain a more favorable mortgage rate that would not have been available for an investment property.

According to legal documents, James was required to occupy the home as her second residence but instead rented it out, generating between $1,000 and $5,000 in income for at least three years. In her 2024 financial disclosures, she listed the property as “real property,” while previous filings labeled it an “investment,” raising questions about her reporting practices.

During the inquiry, it was discovered that Federal Housing Finance Agency Director William Pulte had referred the matter to the Justice Department, alleging that James had “falsified records” to secure home loans. Prosecutors maintain that James profited approximately $18,933 from her mortgage, which she would not have received had she declared the property as a rental.

James has publicly defended her actions, asserting that the charges are politically motivated, specifically targeting her after she led a civil fraud investigation against former President Donald Trump. Her attorney, Abbe Lowell, indicated the legal battle could cost between $5 and $10 million, highlighting that James is not relying on taxpayer funds for her defense.

If convicted on both counts, James could face up to 60 years in prison and fines totaling $2 million. She is scheduled to make her first court appearance in Virginia on October 24.