New York Attorney General Letitia James was indicted on October 9, 2025 by a federal grand jury in the Eastern District of Virginia on two felony counts: bank fraud and making false statements to a financial institution. The charges center on her 2020 purchase of a single‑family home in Norfolk, Virginia, where prosecutors allege she misrepresented the property as a second home to get favorable mortgage terms—despite using it as a rental investment.

Specifically, the indictment claims that James and a co‑purchaser obtained a mortgage of about $109,600 on the $137,000 property, which had clauses preventing its rental use. She is accused of falsely stating she would occupy the home as a second residence, thereby qualifying for lower interest rates and saving nearly $19,000 over time. Jones also allegedly made false statements in homeowners insurance applications and federal tax filings regarding rental income from the property.

James has denied the charges, calling them politically motivated retaliation.  Prosecutors face legal requirements to show she knowingly acted with fraudulent intent, not merely made an error. If convicted on both charges, she could face lengthy prison sentences and heavy fines, as well as forfeiture.  Her initial appearance in court is scheduled for October 24, 2025.