New York Attorney General Letitia James is facing a potential financial firestorm as she battles a federal indictment over a 2020 mortgage fraud scheme.
Experts estimate her legal defense could cost between $5 million and $10 million, but James has confirmed she will not tap the $10 million state fund originally set aside for high-profile officials under legal fire.
Instead, James is turning to the Democratic Attorneys General Association (DAGA) to cover her mounting legal bills.
The move raises questions about transparency, as DAGA’s defense fund is not fully public, and donations can be applied at the organization’s discretion.
Critics argue that this creates a pathway for James to amass millions from donors without clear oversight.
Legal experts weighed in on the potential costs. Abbe Lowell, a high-profile attorney James has retained, reportedly charges over $1,000 an hour, with a $1 million retainer.
Former prosecutor Neama Rahmani estimated the total legal fees could reach as high as $10 million, per the New York Post.
Some observers note that other attorneys may provide pro-bono support due to political sympathies or interest in high-profile cases, but the bill is expected to remain enormous.
James’ indictment stems from allegations that she misrepresented a property purchase in Norfolk, Virginia, as a secondary residence to secure favorable mortgage terms.
Prosecutors claim she later rented the property, saving nearly $19,000 in interest and violating mortgage agreements.
James has called the charges a politically motivated attack aimed at punishing her for prior legal actions against President Donald Trump.
Despite the looming costs, James emphasized she would not rely on taxpayers to fund her legal defense.
A spokesperson confirmed that the state fund remains untouched.
The $10 million provision was quietly included in New York’s state budget earlier this year by a Democratic-controlled legislature, prompting GOP lawmakers to voice objections.
James’ political profile further complicates the situation.
She is seeking re-election next year and has signaled support for New York Gov. Kathy Hochul’s (D) bid, putting to rest speculation she might mount a primary challenge.
Her financial disclosures indicate a salary of $220,000 as attorney general, plus modest additional income from adjunct teaching at Columbia University and rental properties in Brooklyn.
The DAGA legal defense fund James is turning to reportedly allows contributions to be applied broadly across its operations, including legal defense for member attorneys general.
The fund’s structure means donors could support her defense without transparency about how contributions are allocated or how much of the fund is currently available for her case.
James is scheduled to appear in federal court in Norfolk, Virginia, on Oct. 24.
If convicted on the felony charges, she could face significant prison time, fines, and possible forfeiture of property.
Until then, the unfolding financial and political drama surrounding her legal defense continues to attract scrutiny from lawmakers, political observers, and taxpayers alike.
