October 9, 2025
The timing has fueled widespread speculation that the action is overtly political.
New York Attorney General Letitia James was indicted Thursday by a federal grand jury in Virginia on at least one count of bank fraud, stemming from evidence presented personally by an interim U.S. Attorney with close ties to former President Donald Trump.
New York State Attorney General Letitia James indicted on one count of bank fraud and one count of false statements to a financial institution.https://t.co/b03rDSpd4B
— U.S. Attorney EDVA (@EDVAnews) October 9, 2025
The indictment marks a seismic escalation in the highly publicized legal battle between James and Trump, a long-time antagonist of the former president who successfully pursued a massive civil fraud judgment against him in New York. The prosecutor who secured the indictment, Interim U.S. Attorney for the Eastern District of Virginia Lindsey Halligan, was hand-picked by Trump following the abrupt resignation of her predecessor, who reportedly cited insufficient evidence to pursue charges against James.
U.S. Attorney Halligan formally announced the charges, confirming the federal grand jury returned an actual bill charging the New York Attorney General with Bank Fraud (18 U.S.C. § 1344) and False Statements to a Financial Institution (18 U.S.C. § 1014). Halligan issued a stern statement alongside the indictment, emphasizing the gravity of the alleged offenses and the impartiality of the justice system.
“No one is above the law. The charges as alleged in this case represent intentional, criminal acts and tremendous breaches of the public’s trust,” Halligan stated. “The facts and the law in this case are clear, and we will continue following them to ensure that justice is served.”
If convicted on these felony counts, James faces maximum statutory penalties of up to 30 years’ imprisonment and up to a $1 million fine per count, in addition to forfeiture. Actual sentences are typically determined based on federal sentencing guidelines.
The move comes shortly after Trump publicly advocated for James to face criminal charges. Governor Kathy Hochul, a fellow Democrat, immediately denounced the action, characterizing it as the “weaponization of the Justice Department to punish those who hold the powerful accountable.”
“New Yorkers know @NewYorkStateAG James for her integrity, her independence, and her relentless fight for justice. What we’re seeing today is nothing less than the weaponization of the Justice Department to punish those who hold the powerful accountable.”
New Yorkers know @NewYorkStateAG James for her integrity, her independence, and her relentless fight for justice.
What we’re seeing today is nothing less than the weaponization of the Justice Department to punish those who hold the powerful accountable.
— Governor Kathy Hochul (@GovKathyHochul) October 9, 2025
The timing has fueled widespread speculation that the action is overtly political.
Halligan has demonstrated a pattern of targeting Trump critics. Just last week, she obtained a separate criminal indictment against former FBI Director James Comey, a vocal Trump foe, on charges related to allegedly lying to Congress in 2020. Halligan also personally presented the evidence in Comey’s case, reportedly after career prosecutors expressed reluctance.
James’s attorney, Abbe Lowell, has denied the allegations that James falsified bank documents related to a Virginia home to secure a favorable loan rate, an accusation first formalized in a criminal referral by Federal Housing Finance Agency Director Bill Pulte in April.
The indictment casts immediate doubt on James’s ability to continue overseeing her department’s legal challenges against Trump, including her recent petition to the state’s highest court to reinstate the full $500 million penalty imposed on Trump’s company in the New York civil fraud case. This development guarantees a period of prolonged political and legal volatility at the highest levels of the U.S. justice system.
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