Federal prosecutors on Friday forcefully rejected New York Attorney General Letitia James’ claim that the criminal case against her is a politically driven effort orchestrated by President Donald Trump. In a sharply worded legal filing, Justice Department attorneys insisted the charges stem from straightforward, documented mortgage fraud — not political retaliation.
James is currently facing two felony counts:
• Bank fraud
• Making false statements to a financial institution
Together, the charges carry a potential sentence of up to 60 years in prison and $2 million in fines.
The indictment, filed by U.S. Attorney Lindsey Halligan, accuses James of lying on mortgage documents related to a home she purchased in Norfolk, Virginia. Prosecutors say she falsely claimed the property was a “second home” rather than an investment property — a distinction that secured her a significantly lower interest rate.
James has pleaded not guilty.
DOJ: “This Case Is Not Political — It’s Fraud, Plain and Simple”
James’ legal team moved to dismiss the indictment earlier this month, arguing she is being singled out because she is one of Trump’s most outspoken political opponents. They pointed to public statements Trump has made calling her “very guilty” and accusing her of weaponizing law enforcement against him.
But in their Friday response, prosecutors said James has provided no evidence whatsoever that the case was initiated for political reasons.
“Federal courts must not allow defendants to escape a facially valid indictment supported by evidence because of public disputes between elected officials,” government attorneys wrote.
They described the prosecution as nothing more than a “garden-variety mortgage fraud case”, stressing that the actions at issue mirror the same types of violations James herself once pursued aggressively.
The Irony: James Ran for AG on a Platform to ‘Get Trump’
Federal lawyers also emphasized a politically inconvenient fact:
James campaigned for attorney general in 2018 on a promise to prosecute Donald Trump.
She ultimately did — securing a massive civil judgment against him on sweeping financial-fraud allegations, a judgment later reduced by a higher court for being “wildly excessive.”
Given that background, prosecutors argued, James’ claim of political targeting “rings hollow.”
They further noted that U.S. Attorney Halligan — a Trump appointee — made the decision to indict James independently, despite reported objections from some career staffers.
Texts Included in Filing Suggest James Knew Her Claims Looked ‘Suspicious’
The DOJ filing included what prosecutors described as a text message sent by James in 2024, one they say reveals she understood her mortgage representations were questionable.
“I do not want to take deduction,” the text reads. “It looks suspicious and I need to do everything according to the tax code.”
Prosecutors argue the message shows James was aware her actions were problematic, undermining her defense that she acted innocently and had no intent to mislead the bank.
DOJ Distances Itself From Trump-Ally Lawyer Involved in Early Stages
James’ attorneys also pointed to the involvement of Ed Martin, a mortgage-fraud specialist within the Trump administration, who participated in a newspaper photoshoot outside James’ residence and publicly urged her to resign.
Prosecutors made clear: Martin played no formal role in the decision to indict her.
“Martin is not the United States Attorney, he did not sign the indictment, and he was not the decision-maker,” they wrote. His involvement, they added, has “no legal bearing” on the evidence presented to the grand jury.
James Says Home Was Bought for Relative — DOJ Says That’s Irrelevant
James maintains she purchased the Norfolk property for her great-niece and allowed the family to live there rent-free. Prosecutors do not dispute that — nor do they need to.
Mortgage fraud cases hinge on what is written on the application, not how the home is later used.
Under federal law, falsely claiming a property is a primary or secondary residence — instead of an investment — is a criminal act because it misleads lenders about risk.
Political Persecution or Standard Fraud Case? DOJ Says Evidence Speaks for Itself
Despite her claims of political targeting, prosecutors argued the facts are clear:
• She made false representations on mortgage documents
• She received financial benefits by doing so
• Her own text message shows she knew something “looked suspicious”
And they insisted the case would be moving forward under any administration.
“The remarks of presidents and state attorneys general,” they wrote, “do not have any bearing on the evidence on which the United States and the grand jury have relied.”
Unless the judge dismisses the case — considered unlikely at this stage — James will face a full criminal trial.
Emily Johnson is a critically acclaimed essayist and novelist known for her thought-provoking works centered on feminism, women’s rights, and modern relationships. Born and raised in Portland, Oregon, Emily grew up with a deep love of books, often spending her afternoons at her local library. She went on to study literature and gender studies at UCLA, where she became deeply involved in activism and began publishing essays in campus journals. Her debut essay collection, Voices Unbound, struck a chord with readers nationwide for its fearless exploration of gender dynamics, identity, and the challenges faced by women in contemporary society. Emily later transitioned into fiction, writing novels that balance compelling storytelling with social commentary. Her protagonists are often strong, multidimensional women navigating love, ambition, and the struggles of everyday life, making her a favorite among readers who crave authentic, relatable narratives. Critics praise her ability to merge personal intimacy with universal themes. Off the page, Emily is an advocate for women in publishing, leading workshops that encourage young female writers to embrace their voices. She lives in Seattle with her partner and two rescue cats, where she continues to write, teach, and inspire a new generation of storytellers.
