What are the allegations against Letitia James in mortgage fraud case? Charges explored as New York Attorney General pleads not guilty

New York Attorney General Letitia James pleaded not guilty to two felony charges in federal court in Norfolk, Virginia, on Friday, October 24.

Baller Alert has reported that James has been hit with charges relating to bank fraud and fabricating statements to a financial institution in connection with her 2020 purchase of a house in the vicinity.

Federal prosecutors are alleging that James defrauded her lender by claiming that the home would be her secondary residence, though she allegedly rented it out to another family. The indictment claims that this move lowered her interest rate, allowing her to save about $19,000 over the 30-year span of the mortgage.

The allegations against Letitia James explored:

Per Baller Alert, Letitia James said after her indictment:

“This is nothing more than a continuation of the president’s desperate weaponization of our justice system. These charges are baseless, and the president’s own public statements make clear that his only goal is political retribution at any cost.”

She has since reportedly pleaded not guilty. ABC News has reported that the investigation into Letitia James' actions allegedly spanned months, helmed by prosecutors who claim that any profit derived from her misled mortgage would have amounted to about $800 in 2020, when she bought the property for $137,000.

They also expressed concern that their allegations would not be proven beyond a reasonable doubt, citing the lack of clarity under federal mortgage guidelines for a second residence pertaining to occupancy.

The outlet has reported that Letitia James has been renting the home out to her great-niece and her children for free. Prosecutors reportedly met with the latter, who said she never signed a lease or paid rent. She also said that James lent her money for her expenses.

Letitia James is a longtime critic of President Donald Trump. News 18 has reported that the latter publicly called on U.S. Attorney General Pam Bondi to target her weeks before she was indicted. The indictment was eventually brought forth by Trump-appointed former White House aide Lindsey Halligan, who is now U.S. attorney for the Eastern District of Virginia.

James' trial is expected to kick off early next year, though she is expected to file a motion to dismiss the case. Baller Alert has reported that the attorney will likely cite vindictive prosecution and question the grounds of Halligan’s appointment. Motion hearings kick off this December.

Trending

Stay tuned to SoapCentral for more.

×

Was this article helpful?

Thank You for feedback