WASHINGTON (BN24) — A federal grand jury in Virginia has indicted New York Attorney General Letitia James on one count of bank fraud, escalating a bitter legal and political feud with President Donald Trump. The indictment, confirmed Thursday by three people familiar with the case, marks a dramatic turn for James, a Democrat who pursued high-profile civil fraud charges against Trump in New York before he returned to the presidency.
The case was assigned to U.S. District Judge Jamar K. Walker, a Biden appointee. According to federal officials, the bank fraud charge is tied to allegations that James made false statements on mortgage loan applications. Federal Housing Finance Agency Director Bill Pulte referred the matter to the Justice Department after raising concerns about alleged misrepresentations in James’ mortgage filings.
The investigation had stalled in recent months as federal agents and prosecutors questioned whether the evidence could secure a conviction. That changed after Trump appointed one of his personal attorneys, Lindsey Halligan, to serve as acting U.S. attorney for the Eastern District of Virginia despite her lack of prosecutorial experience. Halligan took the rare step of personally presenting the case to a grand jury, convincing a majority to indict James on the single count.
James’ indictment follows months of intensifying efforts by Trump to pursue legal action against his political rivals. Trump has repeatedly used public platforms, including Truth Social, to call for criminal charges against opponents such as James, former FBI Director James Comey, and Rep. Adam Schiff, D-Calif. “We can’t delay any longer, it’s killing our reputation and credibility,” Trump wrote on Truth Social before Comey’s recent indictment. “They impeached me twice, and indicted me (5 times!), OVER NOTHING. JUSTICE MUST BE SERVED, NOW!!!”
The Justice Manual, which guides federal prosecutors, advises that charges should proceed only if there is sufficient admissible evidence to secure a conviction at trial. However, the threshold for securing a grand jury indictment is significantly lower than for a jury conviction. Former U.S. Attorney Carol Lam noted that in Comey’s case, 14 of 23 grand jurors voted for indictment. “As a prosecutor, if even one or two grand jurors express concern and don’t vote for indictment, that’s troubling,” Lam said Thursday on NBC News NOW.
James’ indictment triggered swift condemnation from Democrats, who accused the Trump administration of using the Justice Department as a political weapon. New York Gov. Kathy Hochul wrote on X that Americans were witnessing “nothing less than the weaponization of the Justice Department to punish those who hold the powerful accountable.”
James, who has not yet entered a plea, has clashed with Trump for years, most notably leading the civil fraud case that found him liable for inflating property values and misrepresenting assets. That legal battle ended with a major judgment against Trump shortly before his return to the White House.
The full text of the indictment has not been made public. James is expected to make her initial court appearance in the Eastern District of Virginia in the coming days.
