Federal prosecutors on Friday urged a judge to allow the criminal case against New York Attorney General Letitia James to proceed, describing it as a straightforward mortgage-fraud matter. James faces federal charges of bank fraud and making false statements to a financial institution, carrying a potential 60-year sentence and up to $2 million in fines. Her attorneys argue the case is politically motivated retaliation for her long-standing criticism of President Donald Trump, but prosecutors countered that no evidence supports claims of vindictive prosecution.
In their filing, government lawyers emphasized that the indictment was made solely by U.S. Attorney Lindsey Halligan, a Trump appointee, and not influenced by public political disputes. They dismissed the significance of comments from Trump and other officials, noting that such rhetoric does not affect the evidence presented to the grand jury. Prosecutors also distanced themselves from Ed Martin, an administration attorney whose unusual involvement and public criticism of James raised concerns, insisting he had no decision-making authority in the indictment process.
James has pleaded not guilty, asserting that a home she purchased in Virginia was intended for her great-niece to live in rent-free. Prosecutors, however, allege she misrepresented the property to secure a better mortgage rate and cited a 2024 text message they claim shows she knew her conduct was improper.