A federal grand jury has indicted New York Attorney General Letitia James on one count of bank fraud, according to a person familiar with the matter. The indictment was handed down Thursday and marks a dramatic escalation in the political and legal tensions between the Trump administration and some of its most outspoken critics.
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Minutes ago, in an unusual move, Lindsey Halligan, the U.S. Attorney for the Eastern District of Virginia, personally presented the case to the grand jury. U.S. Attorneys rarely do so, typically delegating that task to career prosecutors. Halligan was appointed just last month after President Trump expressed frustration with what he viewed as slow progress in investigations into his political adversaries.
The appointment and Halligan’s direct involvement are seen by many as signs of the administration’s willingness to use the Department of Justice to pursue political opponents. Earlier this month, Halligan brought charges against former FBI Director James Comey, even after career prosecutors advised against prosecution. Comey pleaded not guilty on Wednesday.
The bank fraud charge against James stems from an investigation into alleged misrepresentations on mortgage documents. The Federal Housing Finance Agency reportedly made a criminal referral earlier this year, accusing James of falsely designating a Norfolk, Virginia home as her primary residence to obtain better loan terms.
James has denied wrongdoing, calling the allegations politically motivated and completely baseless. Her attorneys contend that any discrepancies were minor and that the case is a clear example of selective prosecution.
Before Halligan’s appointment, several prosecutors within the Eastern District of Virginia reportedly questioned whether the evidence justified an indictment. One senior official, Erik Siebert, resigned under pressure after raising concerns about the case’s legitimacy.
Critics argue the indictment represents a troubling politicization of the Justice Department. They warn that replacing career prosecutors with loyal appointees willing to bring cases against political figures undermines the department’s independence. Supporters of the administration counter that the law should apply equally to everyone, regardless of political status.
James will next face arraignment, where she is expected to plead not guilty. Her defense team is preparing motions to dismiss the charges and challenge the government’s evidence, potentially arguing that the prosecution itself is politically driven.
The case comes as the Justice Department continues to pursue multiple controversial prosecutions under Halligan’s leadership, including the Comey case, suggesting a broader strategy of targeting Trump’s past critics.