NORFOLK, Va. — New York Attorney General Letitia James will appear at the Norfolk federal courthouse in the coming weeks after being indicted by the Justice Department for mortgage fraud involving a property in Norfolk.
The charges center on a home on Peronne Avenue near Lafayette Boulevard. Federal prosecutors say James misrepresented her property as a second residence instead of a rental when applying for a mortgage.
That decision allegedly saved her several thousand dollars, but now she's facing two federal charges: bank fraud and making false statements.
James maintains her innocence, calling this case politically motivated payback.
Local political expert Jesse Richman said the case reflects broader political tensions.
"Donald Trump thought that he was unfairly targeted by James and others, and he's pushing to have federal prosecutors target those people," Richman said.
While the case involves roughly $18,000 in mortgage savings, Richman said the implications stretch far beyond the numbers.
"An argument about a few thousand dollars saved maybe on a mortgage by checking that it was a secondary residence versus an investment property," Richman said.
If convicted, James could face prison time, though legal experts say that outcome is unlikely.
But there's another cost to consider: taxpayer dollars funding a trial that could far exceed the money at the center of this case.
"These are taxpayer dollars — we're going to end up with many times the amount that apparently it was in terms of a few thousand dollars in alleged savings and interest," Richman said.
James is scheduled to appear at the Norfolk federal courthouse on October 24.
