New York State Attorney General Letitia James reportedly signed a one-page mortgage document that's at the center of the federal criminal fraud charges she now faces.
A "second home rider" attached to James' 2020 Virginia mortgage is central to a federal indictment alleging she committed bank fraud and made false statements to obtain a lower interest rate, according to the New York Post on Wednesday.
The document, signed by James, certified that the property would be used primarily as her personal second home, a claim prosecutors now say was false.
Federal prosecutors allege that James' misrepresentation allowed her to secure a 3% mortgage rate from Old Virginia Mortgage/AnnieMac, saving her nearly $19,000 in interest payments and credits. Instead, the home was allegedly used as a rental property.
The indictment, filed in the Eastern District of Virginia, charges James with bank fraud and making false statements to a financial institution — crimes that could carry up to 60 years in prison.
James, 66, is scheduled to make her first court appearance in Norfolk on Oct. 24. If convicted, she would be automatically removed from office under New York state law.
Prosecutors say James' grandniece, Nakia Thompson, moved into the Norfolk home shortly after the purchase and lived there rent-free, contradicting the mortgage covenant stating that James would maintain "exclusive control" and use the property primarily for her own personal use.
Tax documents cited in the indictment show James reported zero personal days spent in the home while simultaneously claiming rental income and tax exemptions.
The case's credibility may partly hinge on Thompson's testimony, which the Post reported could prove problematic due to her extensive criminal record, including prior convictions for assault and larceny.
James, who rose to national prominence as a fierce critic of President Donald Trump and led the civil fraud case against him in New York, has denied the allegations.
"These charges are baseless," she said in a statement. "The president's own public statements make clear that his only goal is political retribution at any cost."
James' attorney, Abbe Lowell, echoed that sentiment, calling the prosecution "a serious attack on the rule of law" and warning that the case was driven by Trump's "desire for revenge."
At a rally in Washington Heights this week for New York City mayoral candidate Zohran Mamdani, James struck a defiant tone.
"I will not bow. I will not break. I will not bend. I will not capitulate," she told cheering supporters. "You come for me, you gotta come through all of us."
She framed the charges as part of a larger erosion of democratic norms: "We see powerful voices trying to silence truth and punish dissent and weaponize justice for political gain," she said.
A New York appeals court in August threw out the massive financial penalty a state judge imposed on Trump in a New York case over financial statements that went to lenders and insurers.
One judge wrote that James exceeded her legal authority in bringing the suit, saying if any of Trump's lenders felt cheated, they could have sued him themselves, and none did.
The Associated Press contributed to this report.
Charlie McCarthy ✉
Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.
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