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Schube didn’t stop there. He urged the state’s oversight panel to take immediate action, saying, “The Committee, therefore, should immediately investigate the allegations against James and, if by ‘preponderance of the evidence’ the allegations are substantiated, she should be disciplined accordingly.”
This comes at the same moment a dramatic court development shook the case. On Monday, a federal judge for the Eastern District of Virginia dismissed the criminal indictments filed against James and former FBI Director James Comey — but not because prosecutors failed to make their case. Instead, the judge tossed the charges “without prejudice” after ruling that interim U.S. Attorney Lindsey Halligan was improperly appointed.
In other words, the decision was procedural, not a vindication.
The Justice Department is already appealing the ruling, signaling the fight is far from over. Meanwhile President Donald Trump has publicly hinted that the charges could be re-filed once the appointment issue is resolved.
The underlying accusations revolve around a modest single-family home in Norfolk, Virginia, purchased in August 2020 for roughly $137,000. Prosecutors say James financed most of the purchase through a $109,600 mortgage that explicitly required the property not to be used as a rental. That restriction, they argued, allowed her to receive a lower-cost loan intended for primary residences rather than investment real estate — saving her “approximately $18,933 over the life of the loan.”
But disclosures tell a different story. Records submitted to the New York State Commission on Ethics and Lobbying in Government — examined by the New York Post — show that James labeled the property an “investment” in 2020, 2021, 2022, and 2023. Then, in 2024, she abruptly changed the label to “real property.”
The switch happened just weeks after Federal Housing Finance Agency (FHFA) Director William Pulte referred the matter to the Justice Department, alleging James may have misrepresented the nature of the property to secure better loan terms.
Adding to the suspicions, prosecutors say James never reported rental income from the home from 2021 through 2024 — even though they allege the property brought in thousands of dollars. For a public official who demands transparency from others, critics say the silence is deafening.
James also reportedly estimated the home’s value between $150,000 and $200,000 on her filings, a range that prosecutors suggest may not align with how she portrayed the property to her lender.
For James, these revelations couldn’t come at a worse time. Her high-profile legal crusades against political opponents — including former President Trump — have already drawn accusations of weaponizing the justice system. Now she finds herself under the microscope for the very kind of misconduct she often claims to be fighting.
With a bar complaint in motion, a federal appeal underway, and mounting questions about her financial disclosures, Letitia James isn’t just battling her political rivals anymore. She’s battling for her credibility — and possibly her law license.
