Letitia James Inidcted

Today, New York Attorney General Letitia James was indicted by an Eastern District of Virginia (Norfolk Division) grand jury for mortgage fraud and false statements to a financial institution. Read the indictment in full.

It’s not as satisfying as the Comey indictment – but it’s close.

As the public has known for quite some time, James took out a mortgage to purchase a three bedroom home in Norfolk, Virginia back in 2020. (The property is located at 3121 Peronne Avenue, Norfolk, Virginia 23509.) The purchase price was $137,000 and she financed approximately $109,600.

Under the terms of the mortgage, James was required to “occupy and use the property as her secondary residence.” According to the indictment, James was prohibited from using the property “as a timesharing or other shared ownership arrangement or agreement that requires her to either rent the property or give any other person control over the occupancy or use of the property.”

Yet James would use the property as a rental investment – evidenced by her Schedule E tax forms, which reported rental days (and zero personal use days), the thousands of dollars in rent proceeds, and deductions for property expenses.

Her misrepresentation concerning the use of the property allowed her to obtain a favorable 3.0% rate (as opposed to 3.815% for a rental), allowing her to pocket “approximately $18,933 over the life of the loan.” It’s a fairly straightforward case.

In total, James faces two counts: (1) Bank Fraud, in violation of 18 USC 1344; and (2) False Statements to a Financial Institution, in violation of 18 USC 1014.

There’s also a nice little kicker – the Government is demanding that upon James’ conviction, she forfeit “any property constituting, or derived from, proceeds obtained, directly or indirectly, as a result” of her crimes – including a $18,933 money judgment.

Payback is sweet after AG James’ unconstitutional case against Donald Trump and the Trump Organization, where James accused Trump and others of inflating the value of his net worth and real estate portfolio (and the size of respective buildings) to obtain favorable rates from banks and insurers. The causes of action in the New York lawsuit included fraud and false statements. That case resulted in an approximately half billion-dollar judgment against the Trump Organization/Trump – the judgment would later be tossed on appeal.

Like clockwork, critics accuse Trump of weaponizing the Department of Justice. As if the DOJ hasn’t long-been weaponized. Some might say that Trump is playing by their rules. James herself has demanded accountability where “powerful people cheat to get better loans.” In her own words, “There simply cannot be different rules for different people.”

But we can’t exactly admit they are playing the same way. Comey was part of an illegal spying operation that grabbed the communications of both the Trump Campaign and the Trump Administration and repeatedly lied to Congress (among other crimes), all part of an effort to get Trump out of office. James twisted New York law in an attempt to bankrupt Trump and put his company out of business. It’s more accurate to say that Trump is playing by their rules with a higher standard of ethics. Or, without their wrongdoing. Let’s not give in to the arguments of equivalency.

A final thought – this case is pending in the Eastern District of Virginia’s Norfolk Division (which includes a number of counties and cities). Here’s how that Division broke down in the 2024 election:

• Chesapeake: (51.2% Harris, 47.6 Trump)

• Franklin: (60.8% Harris, 37.8% Trump)

• Norfolk: (69.9% Harris, 28.6% Trump)

• Portsmouth: (69% Harris, 30% Trump)

• Suffolk: (57.3% Harris, 41.5% Trump)

• Virginia Beach: (50.3% Harris, 48.4% Trump)

• Accomack County (56% Trump, 43.3% Harris)

• Isle of Wight County (59.8% Trump, 39.3% Harris)

• Northampton County (52.8% Harris, 46.6% Trump)

• Southampton County: (62.5% Trump, 36.8% Harris)

Overall, the Norfolk Division leans Democrat. The biggest cities in his Division went to Harris – some of them, like Norfolk and Norfolk – by large margins. If we are going by party-line Demographics, then securing a conviction will be tough. But it’s a far better venue than DC or the Alexandria Division, where Comey faces trial.