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A federal grand jury in Virginia has indicted New York Attorney General Letitia James on one count of bank fraud and one count of making a false statement to a financial institution — charges that come after steady pressure from President Trump to prosecute one of his longtime political foes.

James, a Democrat who pledged to investigate Trump during her campaign, eventually sued Trump and his company for inflating the value of some of its properties, winning more than $450 million in the civil business fraud case. The financial penalty 

At one of his own campaign rallies last year, Trump called for both James and the judge in that case to "be arrested and punished accordingly." The president has been persistent in his calls since taking office, writing "JUSTICE MUST BE SERVED" in a post on TruthSocial last month that was directed at Attorney General Pam Bondi. 

Thursday's indictment accuses James of lying on her application for a $109,600 mortgage to buy a property in Norfolk, Va. in 2020, alleging she promised her financial lenders it would be a secondary property for her personal use — but that she instead rented it out. The government says she benefited from "ill-gotten gains" of $18,933 from favorable terms including a lower borrowing rate and a higher seller credit.

 posted to social media, James denied the charges as "baseless" and criticized the president's actions as a "grave violation of our Constitutional order."  

"This is nothing more than a continuation of the president's desperate weaponization of our justice system," James said. "He is forcing federal law enforcement agencies to do his bidding, all because I did my job as the New York State Attorney General." 

Federal prosecutors in the Eastern District of Virginia spent months on the case this year. A Republican career prosecutor there determined there was not enough evidence to bring a case against James. Then 

 of his job by the White House, only to be 

, a former insurance lawyer in Florida with no experience as a prosecutor.

"No one is above the law. The charges as alleged in this case represent intentional, criminal acts and tremendous breaches of the public's trust," Halligan said in a statement. "The facts and the law in this case are clear, and we will continue following them to ensure that justice is served."

Last month, Halligan secured an indictment 

, who has pleaded not guilty to two felony charges.

The charges for James have been pushed in part by 

, the weaponization czar inside the Justice Department who traveled to Brooklyn to stand outside one of James's properties, where 

Abbe Lowell, a lawyer for James, has criticized Martin for targeting Democratic lawmakers and other figures to settle scores for Trump. 

"We are deeply concerned that this case is driven by President Trump's desire for revenge," Lowell said in a statement on Thursday. "When a President can publicly direct charges to be filed against someone — when it was reported that career attorneys concluded none were warranted — it marks a serious attack on the rule of law. We will fight these charges in every process allowed in the law."

James is scheduled for an initial court appearance on October 24. 

Crime, Law and Justice

Politics and Government News

Carrie Johnson

Author

The indictment comes after steady pressure from President Donald Trump to prosecute James, who successfully sued Trump and his company for inflating the value of some of its properties.

Justice Department indicts Letitia James after pressure from Trump

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