A federal grand jury in the Eastern District of Virginia has indicted New York Attorney General Letitia James on charges of bank fraud and making false statements to a lending institution, according to court documents.
The indictment alleges that James misrepresented a property in Norfolk, Virginia, as her primary residence when applying for a mortgage, despite maintaining her principal residence in New York. Prosecutors claim the misrepresentation allowed her to qualify for loan terms designated for owner-occupied properties, including lower interest rates and reduced down-payment requirements.
Court documents from prosecutors — who initially declined to pursue charges because of the lack of evidence — allege James submitted loan documents containing false statements about her income, employment, and intended occupancy of the property. The indictment also alleges that the mortgage proceeds were later used for purposes unrelated to the stated loan, including campaign-related expenditures.
In a letter dated April 24, 2025, Attorney Abbe David Lowell, counsel for Letitia James, responded to the federal referral that preceded the indictment. In the letter, Lowell states that James assisted her niece in purchasing a home in Norfolk, Virginia and that while one power of attorney document mistakenly listed the property as James’s “principal residence,” her loan application and written communications with the lender explicitly stated she would not occupy the property as her primary residence. The correspondence attached to the letter includes emails between James and the mortgage loan originator at AnnieMac Home Mortgage, where James wrote, “This property will not be my primary residence. It will be Shamice’s primary residence.” The filing also contains public property records from New York City confirming that James’s long-time Brooklyn home has been classified as a four-unit primary residence since 2001.
The charges include violations of 18 U.S.C. § 1344 (Bank Fraud) and 18 U.S.C. § 1014 (False Statements to a Federally Insured Institution). Each count carries a potential penalty of up to 30 years in prison.
The case originated from a referral by the Federal Housing Finance Agency (FHFA) earlier this year. National Mortgage Professional previously reported on that referral in its story, “FHFA Refers NY AG Letitia James to the Justice Department for Alleged Mortgage Fraud."
James has not entered a plea. The indictment remains under partial seal, and no trial date has been set.
