A federal grand jury in Eastern Virginia has indicted New York Attorney General Letitia James on one count of bank fraud, multiple outlets are reporting.
US Attorney Lindsey Halligan presented the case to the grand jury on Thursday, according to sources, one month after she was installed in her role.
CNN: We have just learned that Letitia James has just been indicted by the DOJ pic.twitter.com/8oTmU1vAVm
— Acyn (@Acyn)
As noted in August, a criminal referral was filed against James, alleging that she had "falsified records" to get home loans for a Virginia property that she claimed was her "principal residence" in 2023 - while she was serving as a New York state prosecutor.
Federal Housing Finance Agency (FHFA) Director William Pulte sent the missive to Attorney General Pam Bondi and Deputy AG Todd Blanche, claiming that in late August 2023 - weeks before she launched her civil fraud trial against the Trump Organization for inflating the values of its properties.
In 2021, James also purchased a 5-family Brooklyn property, but has "consistently misrepresented the same property as only having four units in both building permit applications and numerous mortgage documents and applications," the letter noted.
Loans secured for this property could have reduced her mortgage interest rate by as much as 1% - leaving James with lower monthly payments under the federal Home Assistance Modification Program (HAMP) since it was listed as containing just four units, according to Pulte.
No one is above the law.
— Tish James (@TishJames)
Fox News' Elizabeth MacDonald opines;
Serious bank fraud indictment against NYS AG Letitia James from a federal grand jury in Virginia. Watch for her to say they have to prove intent. Here’s the road map: Allegations are that James “falsified records” to get a cheaper mortgage for a property in Virginia that she claimed was her “principal residence” in 2023 when she was still serving as a New York state prosecutor to save money via more favorable loan terms—lower rates, more favorable qualification standards, potential tax breaks or eligibility for programs she wouldn’t otherwise qualify for.
Primary residence mortgages usually come with lower interest rates compared to second homes or investment properties. Lenders often allow smaller down payments for primary residences. Claiming a property as a primary residence can make mortgage interest and property taxes eligible for deduction. If she was not actually residing there, this could constitute a false statement to the lender.
She was accused of listing a five-unit building as a four-unit dwelling on official and financial documents. Some mortgage programs, especially FHA and other government-backed loans, are only available for 1–4 unit properties. These programs typically offer lower interest rates, reduced mortgage insurance premiums, and less stringent credit requirements.
A five-unit property is considered commercial real estate, which would require different, often more expensive, financing.
On mortgages from 1983 and 2000, James and her father were listed as “husband and wife.” Listing as spouses may allow for combined income to qualify for a larger mortgage. Lenders may offer simpler terms or fewer questions if applicants appear to be a married couple. If the false representation was made knowingly to obtain better terms, it could be considered fraud.
And remember...
No one is above the law.
— Tish James (@TishJames)
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