New Indictment for New York Attorney General
On Thursday, New York Attorney General Letitia James faced an indictment from a federal grand jury in Virginia, with the charge being a single count of bank fraud, according to sources acquainted with the situation.
This indictment was recorded in the Eastern District of Virginia and also involves former FBI Director James Comey, who has been accused of lying to Congress and obstructing justice, with these allegations dating back to September 25.
Bill Pelt, a federal housing regulator, had referred James to the Justice Department in April. He alleges that James “falsified records” to secure a favorable mortgage on a property in Norfolk, Virginia— a place he claimed was his “primary residence” in 2023, coinciding with the start of his second term as New York’s top prosecutor.
Pelt indicated that James may have committed various crimes, including wire fraud, mail fraud, and providing false statements to financial institutions.
James, 66, dismissed the allegations as “unfounded,” asserting that he co-purchased the house with his niece and that they were indeed using it as their primary residence.
Her office did not respond to inquiries regarding the matter.
In a statement, Democratic New York Governor Kathy Hochul remarked, “What we are witnessing today is nothing less than the weaponization of the Department of Justice to punish those who hold those in power accountable.”
Last year, James secured a civil judgment against the Trump Organization for allegedly inflating the valuation of its real estate holdings. The former president was ordered to pay a fine of $355 million, which, with interest, escalated to over $500 million, and he subsequently appealed the ruling.
The FBI initiated a criminal investigation in May after being introduced to Pelt the previous month. This investigation includes claims that James misclassified a Brooklyn brownstone as four units instead of five, which may have allowed for more favorable financing terms for properties in both New York and Virginia.
Additionally, the FHFA administrator filed similar mortgage fraud charges against Senator Adam Schiff (D-Calif.) for misrepresenting his Maryland home as his primary residence.
