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Federal Grand Jury Indicts N.Y. AG Letitia James in Virginia Mortgage Fraud Case

Presented by a newly installed interim U.S. attorney after career prosecutors balked, the case draws skepticism over intent given the small alleged benefit.

FILE - New York Attorney General Letitia James speaks, Feb. 16, 2024, in New York. (AP Photo/Bebeto Matthews, File)
Chris Hayes; Letitia James
U.S. Attorney Lindsey Halligan "did not coordinate" the indictment of New York Attorney General Letitia James with Attorney General Pam Bondi or other leaders at the Department of Justice, according to CNN. (AP Photo/Jacquelyn Martin, File)
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Overview

  • James is charged with one count of bank fraud and one count of making false statements tied to a 2020 Norfolk home, with prosecutors alleging she misrepresented it as a secondary residence to secure better loan terms.
  • Prosecutors say the alleged misrepresentation would have saved her about $18,933 over the life of the loan, involving OVM Financial and First Savings Bank, according to the indictment and reporting.
  • James was not arrested and is scheduled to make her initial appearance in federal court in Norfolk on October 24, where the case has been assigned to U.S. District Judge Jamar Walker.
  • Lindsey Halligan, a former Trump aide appointed last month as interim U.S. attorney in the Eastern District of Virginia, personally presented the case to the grand jury after Erik Siebert’s removal following his resistance to charging.
  • Legal experts and civil liberties groups question the prosecution’s strength and motives, citing the small alleged loss, challenges in proving knowing intent, rare federal cases for such sums, and likely defense motions alleging vindictive or selective prosecution.