A federal grand jury in Virginia has indicted New York State Attorney General Letitia James on criminal bank fraud charges, according to numerous reports.
Two charges:
U.S. Attorney for the Eastern District of Virginia Lindsey Halligan presented the case before the grand jury on Thursday.
We have the indictment!
Halligan took over the post last month after Erik Siebert left.
Siebert supposedly did not believe they had sufficient evidence against James.
Remember, the prosecution has to prove that James knowingly committed mortgage fraud.
First off, how about a flashback!
In April, the Federal Housing Finance Agency (FHFA) referred James to the DOJ for alleged mortgage fraud.
“Based on media reports, Ms. Letitia James has, in multiple instances falsified bank documents and property records to acquire government backed assistance and loans and more favorable loan terms,” wrote Bill Pulte, director of FHFA, to Attorney General Pam Bondi.
Pulte added: “This has potentially included 1) falsifying residence status for a Norfolk, Virginia-based home in order to secure a lower mortgage rate and 2) misrepresenting property descriptions to meet stringent requirements for government backed loans and government assistance.”
In mid-August 2023, James allegedly gave someone power of attorney to establish the Virginia property as her “principal residence.”
At the end of the month, James purchased the property through her attorney.
“In a Fannie Mae/Freddie Mac Form 3047 and in mortgage documents, she reaffirmed this would be her primary residence, despite being a statewide public office holder in the state of New York at that same time and primarily residing in New York,” explained Pulte.
As I mentioned before, the prosecution has to prove James knowingly committed mortgage fraud.
In other words, intent.
I did not learn much about mortgage fraud in my law classes. What I’ve read, though, seems to be complex. I can see why Siebert felt the way he did. It’s hard to prove intent.
I found these common red flags that tell you a person probably lied about their primary residence:
This is also important. What makes it a primary residence:
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