New York’s top prosecutor just got a taste of her own medicine.
The woman who built her career weaponizing the justice system against Trump now faces serious federal charges herself.
And Letitia James was indicted on federal fraud charges that could end her political crusade for good.
Federal grand jury charges James with bank fraud and false statements
A federal grand jury in the Eastern District of Virginia returned an indictment Thursday charging New York State Attorney General Letitia James with Bank Fraud under 18 U.S.C. Section 1344 and False Statements to a Financial Institution under 18 U.S.C. Section 1014.
U.S. Attorney Lindsey Halligan announced the charges in a statement that cut right to the heart of the matter.
Halligan didn’t mince words in her statement announcing the charges.
"No one is above the law," she declared. "The charges as alleged in this case represent intentional, criminal acts and tremendous breaches of the public’s trust. The facts and the law in this case are clear, and we will continue following them to ensure that justice is served."¹
James fired back with her standard playbook, calling the charges "baseless" and claiming they represent "nothing more than a continuation of the President’s desperate weaponization of our justice system."²
But the irony is absolutely rich here.
The woman who’s spent years claiming "no one is above the law" while pursuing Trump for business practices now stands accused of committing similar fraud herself.
If prosecutors get a conviction, James could face decades behind bars with up to 30 years in prison per count, plus fines reaching $1 million on each charge.³
The mortgage fraud scheme that brought her down
The charges focus on a Norfolk, Virginia house James bought in August 2020, paying $137,000 and taking out a $109,600 mortgage backed by Fannie Mae.
Here’s where James allegedly crossed the line.
She put her signature on paperwork promising she’d use the three-bedroom house as her secondary residence – a classification that unlocks favorable loan terms with lower interest rates and reduced closing costs.
But federal prosecutors say James had different plans entirely.
According to the indictment, she turned around and rented the property to a family of three while never actually living there herself.
Federal prosecutors say this scheme put nearly $19,000 in James’s pocket over the loan’s lifetime through better terms she had no right to claim.⁴
Prosecutors also say James lied on her homeowner’s insurance forms, checking the box for "occupied non-seasonal use" when she knew full well the property was generating rental income.
This isn’t some minor paperwork error – this is systematic fraud involving federal mortgage programs.
Pattern of questionable real estate dealings exposed
The Virginia indictment appears to be just the tip of the iceberg.
Investigative reports by Joel Gilbert in The Gateway Pundit beginning in March 2025 detailed what appears to be a decades-long pattern of mortgage fraud by James across multiple properties.
In Brooklyn, Gilbert reported that James repeatedly misrepresented her 5-unit apartment building as having fewer units on mortgage applications – a common threshold that determines whether properties qualify for residential versus commercial lending terms.
Commercial loans typically carry higher interest rates and significantly higher closing costs.
Gilbert’s investigation also uncovered that James’s very first real estate transaction in 1983 involved signing mortgage documents claiming her father was her husband – an obvious falsehood that helped her qualify for a loan at age 24.
Federal Housing Finance Agency Director Bill Pulte made a criminal referral against James to the Department of Justice in April based on these allegations.⁵
The investigation remains ongoing for James’s other properties in both New York and Virginia.
The ultimate hypocrisy exposed
You have to step back and appreciate the staggering hypocrisy here.
James built her entire political career on aggressive prosecution of real estate fraud, particularly targeting Trump and his organization for allegedly inflating property values to secure favorable loan terms.
She made headlines in February 2024 with this statement: "Everyday Americans cannot lie to a bank to get a mortgage to buy a home, and if they did, our government would throw the book at them. There cannot be different rules for different people. No one is above the law."⁶
Now she stands accused of doing exactly that – lying to banks to secure favorable mortgage terms she wasn’t entitled to receive.
James sued Trump for $370 million over property valuations while allegedly engaging in her own mortgage fraud schemes for decades.
She weaponized the New York Attorney General’s office to pursue politically motivated prosecutions, promising to go after Trump "and his children" before she was even elected.
But federal prosecutors don’t operate like state political machines, and mortgage fraud involving government-sponsored enterprises like Fannie Mae carries serious consequences.
The investigation reportedly began under significant resistance from career prosecutors, with Acting U.S. Attorney Erik Siebert resigning under pressure after refusing to pursue charges.
Trump then appointed Lindsey Halligan, who obtained the indictment despite having no prior prosecutorial experience.⁷
What this means for Trump’s legal battles
James’s legal troubles couldn’t have come at a worse time for Democrats’ lawfare strategy against Trump.
Her credibility as a prosecutor pursuing Trump for business practices is now completely destroyed.
How can someone facing federal charges for mortgage fraud maintain any moral authority to prosecute similar allegations against political opponents?
Trump’s legal team is already pointing to James’s indictment as evidence of prosecutorial misconduct and selective enforcement in her cases against the former president.
If James is forced to step aside or becomes too politically toxic to continue her anti-Trump crusade, it could significantly impact ongoing cases against Trump and his business interests.
The timing also exposes the fundamental corruption at the heart of the Democrat lawfare strategy.
They spent years claiming Trump posed a threat to the rule of law while one of their chief prosecutors allegedly broke federal banking laws for personal profit.
James turned her office into a campaign headquarters for taking down Trump, making political targeting her primary mission instead of equal enforcement of the law.
Now that same political weaponization has made her a target of federal prosecution.
For Americans who’ve watched Democrats abuse the justice system against their political opponents, seeing one of the chief weaponizers face federal charges feels like long-overdue accountability.
The investigation continues, but the damage to James’s political career and anti-Trump legal crusade is already severe.
Her first court appearance is scheduled for October 24 in Norfolk, Virginia, where she’ll have to answer for allegedly doing exactly what she’s spent years accusing others of doing.
¹ U.S. Attorney’s Office Eastern District of Virginia, "New York State Attorney General Indicted," Department of Justice, October 9, 2025.
² Letitia James Statement, CNN Politics, October 9, 2025.
³ Ibid.
⁴ Federal Grand Jury Indictment, Eastern District of Virginia, October 9, 2025.
⁵ CBS News, "New York AG Letitia James indicted in Virginia after investigation by Trump’s DOJ," October 9, 2025.
⁶ Joel Gilbert, "NY Attorney General Letitia James Goes Public with Her Defense Strategy," The Gateway Pundit, September 2025.
⁷ NBC News, "Grand jury indicts N.Y. Attorney General Letitia James," October 9, 2025.
