(Luis Cornelio, Headline USA) Facing a federal indictment is costly, but New York Attorney General Letitia James won’t have to worry much despite being charged with mortgage fraud.
James’s pockets won’t take much of a hit since she can tap into two funding sources, including one bankrolled by taxpayers.
To pay for her defense, James will rely on the Democratic Attorneys General Association, a political committee that campaigns for Democratic attorney general candidates.
The group could end up paying between $5 to $10 million for James’s defense against the federal charges, former prosecutor Neama Rahmani said in an interview with the New York Post.
In addition to DAGA’s support, James can also draw from a $10 million slush fund quietly approved by the New York legislature to cover her legal bills tied to DOJ probes.
James was indicted on Thursday by Acting U.S. Attorney Lindsey Halligan of the Eastern District of Virginia on one count of bank fraud and one count of making false statements to a financial institution.
If convicted, she faces up to 30 years in prison per count, a $1 million fine, and forfeiture.
In a statement, Halligan said that “no one is above the law,” while describing the evidence as “clear.”
“The charges as alleged in this case represent intentional, criminal acts and tremendous breaches of the public’s trust,” Halligan said.
James’s indictment followed a swift investigation referred to the DOJ by Federal Housing Finance Agency Director Bill Pulte.
The DOJ alleges that James falsely claimed an investment property as her secondary residence to secure better loan terms. This move saved her nearly $18,000 in interest, according to Halligan.
Second homes and rental properties typically carry higher rates. Knowingly lying on a federally backed mortgage application constitutes a federal crime.
