Letitia James Arraigned on Norfolk Mortgage Fraud

New York Attorney General Letitia James was arraigned Oct. 24 in Norfolk, Virginia, and pleaded not guilty to two felony counts — bank fraud and making false statements — over her 2020 purchase of a Norfolk home that prosecutors say she mischaracterized as a second home to obtain more favorable mortgage terms and save roughly $18,933 over the life of the loan. The Eastern District of Virginia has set a trial date for Jan. 26, 2026, with the trial expected to last about a week. James has asked a federal judge to dismiss the indictment, arguing interim U.S. Attorney Lindsey Halligan was unlawfully appointed beyond the statutory 120‑day limit, and she calls the case political retaliation. The prosecution has been accompanied by turmoil in the U.S. attorney’s office: career prosecutors resisted bringing charges, several were fired or resigned, and Halligan personally presented evidence to a grand jury. One dismissed prosecutor, Beth Yusi, was accused of sending investigative files containing James’s personally identifying information to a personal email account (an allegation her lawyer disputes) and had authored an internal memo stating there was insufficient evidence to bring the case.