Attorney General Letitia James was hit with a surprise federal indictment Thursday, according to multiple sources.
The move came from Lindsey Halligan, President Donald Trump’s newly appointed U.S. Attorney for the Eastern District of Virginia.
The indictment caught top Justice Department officials, including Attorney General Pam Bondi, off guard.
Sources told CNN that Halligan acted independently, bypassing normal DOJ channels.
Halligan, who has led the Virginia office for just over two weeks, took the case directly to a grand jury. The result: James faces two felony counts.
The charges relate to a 2020 property purchase in Norfolk, Virginia. Prosecutors claim James misrepresented the home as a secondary residence to secure better mortgage terms.
James later rented the property, allegedly violating the terms of her mortgage and saving nearly $19,000 in interest. Court filings cite the discrepancy as the basis for bank fraud and false statement charges.
If convicted, James could face up to 30 years per count, fines up to $1 million per count, and possible forfeiture of the property. Sentencing would ultimately depend on federal guidelines and the judge’s discretion.
“This is about revenge, plain and simple,” James said Friday, calling the indictment “a politically motivated stunt.” James’ claim comes years after she used her position as attorney general to prosecute Trump.
Bondi’s office reportedly questioned Halligan’s unilateral move, per Trending Politics.
DOJ officials were concerned the action bypassed institutional norms. Some worry this could open the department to claims of politicization.
Halligan is known for her aggressive approach. She previously pushed to pursue former FBI Director James Comey, signaling a pattern of targeting high-profile figures aligned against Trump.
James rose to national prominence by going after Trump’s business empire. She led civil cases seeking hundreds of millions in damages. Many saw her as a partisan actor using her office for political vendettas.
Trump allies are calling Thursday’s indictment “poetic justice.” They argue James is finally facing accountability for her past attacks on the former president.
James’s legal team plans to challenge the indictment, arguing it is selective prosecution. Experts note that proving criminal intent in property designation cases can be difficult.
James is scheduled to appear in federal court in Norfolk on October 24 for her formal arraignment. A felony conviction could automatically remove her from office under New York state law.
Meanwhile, Bondi is expected to meet with senior DOJ officials to review Halligan’s handling of the case. Sources say the meeting will address concerns about bypassing Main Justice.
The indictment marks a dramatic turn in the ongoing saga between Trump allies and James, highlighting internal DOJ divisions and raising questions about the politicization of federal prosecutions.
