Letitia James Faces Mortgage Fraud Arraignment

New York Attorney General Letitia James is set to be arraigned Friday in federal court in Norfolk, Virginia, on a two-count indictment charging bank fraud and making false statements tied to her 2020 purchase of a Norfolk home. Prosecutors allege she misrepresented the property as a second home to obtain more favorable mortgage terms while renting it as an investment, a scheme they say saved her roughly $18,000 over the life of the loan. James denies wrongdoing, is expected to plead not guilty, and has called the prosecution a politically motivated "weaponization" of the justice system. The case was brought by interim U.S. Attorney Lindsey Halligan after President Trump publicly urged prosecutions, and prosecutors advanced the matter over objections from career staff — a sequence that has prompted internal departures and raised concerns about politicization. James’s lawyers plan to move to dismiss the indictment, arguing Halligan was improperly appointed, and have sought limits on prosecutors’ public disclosures after reports Halligan communicated with a reporter. The arraignment is among several recent federal cases against prominent Trump critics that have intensified scrutiny of the Justice Department’s independence.