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Potentially Facing Decades in Prison and Millions in Fines, Letitia James Seeks Dismissal of Mortgage Fraud Charges

New York Attorney General Letitia James asked a federal judge in Virginia on Nov. 7 to dismiss a mortgage fraud case against her that she says is a case of selective prosecution.

James, who entered not-guilty pleas to charges of mortgage fraud in Norfolk, Virginia, on Oct. 24, alleges the Trump administration targeted her after she brought a civil action against President Donald Trump for bank fraud in New York. Her trial is scheduled for Jan. 26, 2026.
James is accused of one count of bank fraud and one count of making false statements to a financial institution, after she said on mortgage documents that a house she purchased in Norfolk would be used as a secondary residence.

The U.S. Department of Justice claims that she instead used that home as a rental property for a family of three. Designating the property as a second home instead of a rental property allowed James to save nearly $19,000 in interest and tax credits, the government alleges.
If convicted, she could be sentenced to as many as 30 years in prison and fined $1 million for each count.

James was elected in 2018 after running on a campaign promise to investigate Trump. In September 2022, she filed a lawsuit against Trump, alleging he had overvalued his real estate holdings by billions of dollars.

James stated in the motion that she had brought a lawsuit against Trump, two of his children, and the Trump Organization, which resulted in a court finding in 2024 that they were liable for fraud.

New York Supreme Court Justice Arthur Engoron ruled against Trump in February 2024, issuing a judgment of more than $460 million, with interest accruing.

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