Letitia James, NY attorney general and Trump foe, indicted for bank fraud

PHOTO CAPTION: Illustrative photo — New York State Attorney General Letitia James speaks after receiving endorsements from Westchester County leaders for her bid for New York governor in White Plains, New York, U.S., December 2, 2021. REUTERS/Joy Malone

By Sarah N. Lynch and Luc Cohen

October 9  -  New York Attorney General Letitia James, a longtime foe of President Donald Trump, was indicted for bank fraud on Thursday, a person familiar with the matter said, as the administration seeks to use government power against those who have pursued investigations into him or publicly resisted his agenda. 

The details of the indictment, returned by a grand jury in the Eastern District of Virginia, were not immediately clear. The Justice Department has been probing mortgage fraud allegations against her. 

Neither James' lawyers nor representatives of her office immediately responded to requests for comment. 

A spokesperson for the Justice Department could not be immediately reached for comment.

Trump, a Republican who campaigned for reelection in part on a vow of retribution after facing a slew of legal woes since his first term in the White House ended in 2021, has repeatedly assailed James on social media and at political rallies as a partisan enemy.

INDICTMENT FOLLOWS CHARGES AGAINST COMEY

The indictment of James comes after a grand jury in Virginia on September 25 indicted former FBI Director James Comey on charges of making false statements and obstructing a congressional investigation. Comey pleaded not guilty on Wednesday. Trump has regularly assailed Comey's handling of the FBI investigation that detailed contacts between Russia and Trump's 2016 campaign. 

James is one of several Democratic state attorneys general who have sued to block Trump administration actions. She is best known for bringing a civil fraud case against Trump and his family real estate company in 2022. The case resulted in a $454.2 million penalty against Trump after a judge found he fraudulently overstated his net worth to dupe lenders.

A New York state appeals court in August threw out the penalty, which had grown to more than a half-billion dollars with interest, but upheld the trial judge's finding that Trump was liable for fraud. Both Trump and James' office are appealing to the state's highest court.

Trump denied wrongdoing. He has accused James' office of bringing the case against him for political reasons. 

JAMES' LAWYER HAS DENIED ALLEGATIONS

The Justice Department's mortgage fraud probe into James was opened after Federal Housing Finance Agency Director William Pulte, a Trump appointee, sent a letter to the U.S. Justice Department alleging James "falsified records" to obtain favorable loans on homes she purchased in Virginia and Brooklyn. 

James' lawyer Abbe Lowell said in May those accusations were "baseless and long-discredited." 

The Justice Department, after receiving referrals from Pulte, has also opened mortgage fraud probes into U.S. Senator Adam Schiff, a Democrat who led the House of Representatives' inquiry that led to Trump's impeachment in 2019, and Lisa Cook, a member of the Federal Reserve Board of Governors appointed by Democratic President Joe Biden. 

Neither Schiff nor Cook has been charged with a crime, and they both deny wrongdoing. 

(Reporting by Sarah Lynch in Washington and Luc Cohen in New York; Additional reporting by Andrew Goudsward in Washington; Editing by Noeleen Walder and Rod Nickel // REUTERS)