New York Attorney General Letitia James Faces Fraud Charges Over Virginia Property Disclosure
NORFOLK, VA – New York Attorney General Letitia James has been indicted on charges of bank fraud and making false claims to a financial institution stemming from alleged misrepresentations regarding a Virginia property, teh Department of Justice announced. The indictment alleges James falsely presented the property as her primary residence to secure a more favorable mortgage rate, while together treating it as a rental property for tax purposes.
According to the indictment, James obtained a mortgage on the Norfolk, Virginia home in 2019. in ethics filings, including one from 2024, the property was designated as ”real property,” rather than an investment. Prosecutors allege this “misrepresentation” allowed James to obtain a lower mortgage rate than she would have qualified for had she disclosed her intent to rent the property. The alleged ill-gotten gains from this lower rate amount to “approximately $18,933 over the life of the loan.”
The DOJ further alleges James misrepresented the property’s intended use on a homeowners’ insurance application, stating it would be “owner occupied.” however, on her federal tax forms, James reportedly classified the home as “rental real estate,” reporting “thousand(s) of dollars in rents received” and claiming related deductions.
James faces up to 60 years in prison and a fine of up to $2 million if convicted on both counts. She is scheduled to make her first appearance in federal court in Virginia on October 24th.
The case has already sparked discussion regarding the potential cost of James’s legal defense, estimated by experts to range from $5 to $10 million. While New York State has a $10 million legal defense fund available, James’s office has stated she will not utilize it. Instead, she is reportedly turning to the national Democratic attorneys General Association for financial support.
Her defense will be led by Abbe Lowell, a high-profile attorney who previously represented Hunter Biden, and could command fees exceeding $1,000 per hour, alongside a $1 million retainer. Some legal experts suggest other attorneys may offer pro-bono assistance due to the case’s high profile and political implications.
