NY AG Letitia James admitted Virginia home at center of bank fraud indictment was ‘investment’ property

Indicted New York Attorney General Letitia James is facing scrutiny over her Virginia home, which she listed as an “investment” property in her financial disclosure forms multiple times. The three-bedroom property in Norfolk was purchased in August 2020 and is valued between $100,000 to under $150,000, according to James’ 2020, 2021, 2022, and 2023 disclosures. However, in her 2024 filing, she changed the designation to “real property” and increased the estimated value to $150,000 to under $250,000.

The change in designation raised questions, especially after Federal Housing Finance Agency Director William Pulte sent a criminal referral to the Justice Department alleging that James had falsified records to obtain home loans for a different property in Norfolk. The AG did not disclose any income from the Norfolk home in her filings between 2021-2024, except for a property in Norfolk that brought in between $1,000 and $5,000 in income in her 2020 disclosures.

Federal prosecutors allege that James misrepresented her use of the property when obtaining a mortgage loan, which required her to use the property as her secondary residence and prohibited rental. Despite these requirements, prosecutors claim that the property was used as a rental investment property, allowing James to secure a lower mortgage rate and save approximately $18,933 over the life of the loan.

Additionally, James misrepresented the property’s intended use on a homeowners’ insurance application and treated it as “rental real estate” on her federal tax forms, reporting rental income and claiming deductions. She now faces charges of bank fraud and making false claims to a financial institution, which could result in up to 60 years in prison and a fine of up to $2 million if convicted.

James is set to appear in federal court in Virginia on October 24. Legal experts estimate her defense costs to be between $5 to $10 million, with high-profile attorney Abbe Lowell possibly billing over $1,000 an hour. While James could access a $10 million legal defense fund, she has opted to seek assistance from the national Democratic Attorneys General Association. Despite the hefty legal fees, some lawyers may take up her case pro-bono due to its high-profile nature and political implications.