New Charges Against Letitia James
On October 9, 2025, a federal grand jury in the Eastern District of Virginia indicted New York Attorney General Letitia James on two counts: bank fraud and false statements to a financial institution. The charges relate to her 2020 mortgage application for a property in Norfolk, Virginia, where she allegedly misrepresented the home as her “secondary residence” despite renting it out—saving around $18,933 in interest as alleged.
The case stems from a criminal referral in April 2025 by FHFA Director Bill Pulte, who accused James of misclassifying a Virginia property and a Brooklyn multi‑unit building to gain favorable mortgage terms. Charles critics and legal observers have expressed skepticism, pointing to perceived weaknesses in the case and a political context to the charges.
Schiff in the Crosshairs Too
The same FHFA referral that targeted James also flagged Senator Adam Schiff (D‑CA) for alleged mortgage fraud and occupancy misrepresentation across multiple loans between 2003 and 2019. According to an internal Fannie Mae memo cited by The Washington Post, Schiff is accused of misstating which properties he treated as primary residences to secure more favorable mortgage terms.
Political and Legal Implications
James vehemently denies all wrongdoing, calling the indictment a politically motivated “revenge tour” tied to her past litigation against Trump. Some legal analysts argue the case lacks strength: prosecutorial resistance was reportedly present, and the alleged financial advantage is modest compared to typical federal fraud prosecutions. The broader environment — indictments of Trump critics like James and Schiff following prior civil or investigative actions — has raised concerns about potential misuse of prosecutorial power.
