New York Attorney General Letitia James is facing a bar complaint after her federal mortgage fraud charges were dismissed by a judge. The complaint was filed by a right-leaning group claiming James engaged in potentially illegal and dishonest conduct.
The Center to Advance Security in America submitted the complaint to the Manhattan and Bronx-focused Attorney Grievance Committee. The group called for an immediate investigation into James’ conduct.
Curtis Schube, director of research and policy at the center, wrote that “fraud, misrepresentation, honesty and trustworthiness are all factors” considered when disciplining an attorney. He argued James should be held accountable if evidence substantiates the allegations.
James’ federal charges were thrown out Monday by Senior U.S. District Judge Cameron Currie in the Eastern District of Virginia. The judge ruled that the special attorney who filed the charges had no lawful authority.
Lindsey Halligan, serving as a special attorney in the U.S. Attorney’s Office, had filed the mortgage fraud charges. Currie said Halligan had not been confirmed by Congress or any judicial panel to bring the indictment.
The dismissal was a temporary win for James, but the Department of Justice under President Trump can appeal and refile the charges.
The decision clears the path for legal action while preserving the government’s ability to continue pursuing the case, as the New York Post reported.
James was indicted in October for allegedly falsifying mortgage documents to secure a $109,600 loan on a Norfolk, Virginia, property. She claimed the house as her primary residence, but prosecutors said it was occupied by her grandniece.
The allegedly fraudulent loan would have generated nearly $19,000 extra over its lifetime, according to the indictment. The case drew national attention due to James’ high-profile position.
Her ethics filings in 2020 through 2023 listed the Norfolk home as an “investment property” valued between $100,000 and $150,000. James reported it earned between $1,000 and $5,000 in income.
In 2024, James changed the designation of the property to “real property,” claiming it generated no income. That disclosure followed a referral from Federal Housing Finance Agency Director Bill Pulte to the DOJ.
The referral was related to potential mortgage fraud tied to a second home James purchased in Norfolk. Legal experts have said the shift in reporting raised serious questions about transparency.
Attorney General Pam Bondi said the Trump DOJ plans to pursue all legal options, including an immediate appeal to hold James accountable for what she called “unlawful conduct.”
If convicted on all counts, James could face up to 60 years in prison and fines totaling $2 million. The bar complaint adds an additional layer of scrutiny on her professional conduct.
James released a statement after the charges were dismissed, claiming victory and thanking supporters for their prayers. She called the charges baseless and said she remains “fearless” in serving New Yorkers.
