Politics in New York usually feels like a heavyweight boxing match where everyone is wearing brass knuckles, but the fall of 2025 took things to a level we haven't seen in decades. When the news broke that a federal grand jury in Virginia had indicted New York Attorney General Letitia James, the shockwaves didn't just rattle Albany—they practically leveled it. It was October 9, 2025, a date people in New York politics won't forget anytime soon.
The charges? Bank fraud and making false statements to a financial institution.
Basically, federal prosecutors in the Eastern District of Virginia claimed James lied on mortgage documents back in 2020. They alleged she bought a three-bedroom house in Norfolk, Virginia, for $137,000 and claimed it was a "secondary residence" to snag a better interest rate, only to turn around and rent it out as an investment property. The DOJ said this little maneuver saved her about $19,000. It sounds like a technicality, right? Maybe. But in the middle of a high-stakes political war with a returning Trump administration, it was enough to ignite a firestorm.
The James Indictment Hochul Support: A Political Shield
Governor Kathy Hochul didn't wait for the ink to dry on the indictment before she came out swinging. Honestly, it was one of the most aggressive stances she’s taken during her tenure. Usually, Hochul plays it a bit more "measured," but this time she went straight for the jugular. She called the whole thing a "blatant perversion of our system of justice."
She wasn't just expressing an opinion; she was setting the tone for the entire state’s Democratic response.
Hochul’s support for James wasn't just about friendship or even party loyalty. It was a strategic defense of the New York Attorney General's office itself. Remember, Tish James is the one who took on the Trump Organization in that massive civil fraud case. For Hochul, letting James go down without a fight would have looked like a total surrender to federal pressure. She posted on X (formerly Twitter) that New Yorkers know James for her "integrity" and "independence," framing the indictment as "nothing less than the weaponization of the Justice Department."
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It’s kinda wild when you think about it. For years, the phrase "no one is above the law" was the rallying cry against Donald Trump. Now, the tables had turned, and Hochul was being pressed by critics—especially those over at Fox News—to explain if that same rule applied to her ally. Her office stayed pretty quiet on the specific legal merits of the mortgage documents, choosing instead to focus on the intent behind the prosecution.
Why Virginia? The Strange Case of Lindsey Halligan
One of the biggest questions people had was: Why is a New York official being indicted in Virginia?
The answer lies in the appointment of Lindsey Halligan. She was one of Trump's former personal attorneys and was hand-picked to be the interim U.S. Attorney for the Eastern District of Virginia. This is where the narrative of "political retribution" really gained legs. Career prosecutors who had been looking at the James case originally thought the evidence was too weak to bring charges. Those prosecutors were reportedly fired or pushed out before Halligan took over and pushed the indictment through.
The defense, led by attorney Abbe Lowell, didn't just deny the charges. They attacked the very foundation of the case. They argued that Halligan wasn't even lawfully appointed. And surprisingly, they won that round. On November 24, 2025, Judge Jamar Walker—a Biden appointee—dismissed the indictment without prejudice.
The judge ruled that the 120-day clock for Halligan's interim appointment had run out.
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The Fallout and the Double-Indictment Attempt
Just because the first indictment was tossed doesn't mean the drama ended. Federal prosecutors in Norfolk tried to get a second indictment just two weeks later. They went back to a grand jury in December 2025, but this time, the grand jury said no. They declined to indict her.
That was a huge moment for James and a massive "I told you so" for Hochul.
The Governor used that moment to double down. At a rally at the 1199 SEIU headquarters, she told the crowd, "When we get punched, we fight back." It was clear that James indictment Hochul support was becoming a central theme of the 2026 election cycle. Hochul wasn't just protecting James; she was using the situation to cast herself as a "resistance" leader against what she called federal overreach.
The Reality of the "Fraud"
To be fair, the specific allegations weren't just about the "secondary residence" claim. There were other accusations floating around, though they weren't all in the final indictment. There were claims about:
- Misrepresenting the number of units in a property.
- Listing her father as her spouse on documents from way back in the 80s.
- Incorrectly reporting income on various financial disclosures.
James's team admitted there might have been "minor errors" or "clerical inaccuracies," but they maintained these were things that happen in complex real estate deals all the time. They argued that most people don't get hit with federal bank fraud charges for $19,000 in interest savings unless their name is Letitia James and they’ve recently won a $450 million judgment against the President of the United States.
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Lessons from the Albany-D.C. War
The whole saga of the James indictment Hochul support teaches us a lot about where American politics is in 2026. Everything is a proxy battle now. A mortgage on a house in Norfolk isn't just a mortgage; it’s a weapon. A Governor’s statement of support isn't just a press release; it’s a defensive fortification.
If you’re following this or worried about how it affects New York governance, here are the actual takeaways:
- Executive Stability: Despite the legal chaos, Hochul and James have continued to work together. Just this month (January 2026), they teamed up to sue the federal government over frozen childcare and housing funds. The partnership is intact.
- Legal Precedent: The dismissal of the case based on the "unlawful appointment" of a prosecutor is a big deal. It sets a precedent that the administration can't just install anyone they want into U.S. Attorney roles without following the strict vacancy rules.
- Voter Sentiment: This has deeply polarized the state. Downstate voters largely see James as a martyr, while upstate and conservative voters see this as "rich irony" given her career spent prosecuting others for financial misdeeds.
Moving forward, keep a close eye on the 2026 primary season. The way Hochul handled this will be a major talking point. She chose to tie her political fate to James's legal survival. For now, with the indictments dismissed and the grand jury refusing to refile, it looks like a bet that paid off.
Practical Next Steps for Following the Case:
- Monitor the DOJ Appeal: The Justice Department is currently appealing Judge Walker’s decision to dismiss the original indictment. If they win that appeal, the charges could be reinstated without a new grand jury.
- Watch the FAIR Business Practices Act: Hochul recently signed this (January 5, 2026), which gives James even more power to go after "abusive" business practices. This is a sign that James is not backing down and intends to use her office more aggressively than ever.
- Check Federal Court Dockets: Look for updates in the Eastern District of Virginia (EDVA) for any new filings regarding "James, Letitia" to see if a third attempt at an indictment is brewing.
The war between Albany and Washington D.C. is far from over. If anything, the 2025 indictment was just the opening salvo.