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https://www.thefp.com/p/is-trump-outside-of-the-law-on-the
On October 9 federal prosecutors indicted James on charges of mortgage >fraud. The indictment alleges that James misrepresented facts about a >property she was trying to buy in order to secure a lower interest rate.
IAve argued, including in these pages, against selective and vindictive >prosecutions, but I have to admit that the singular case of Letitia
James may call for application of a different, though highly abstruse,
legal maxim. As the United States Second Circuit Court of Appeals put it
in 1994: oTurnabout is fair play, even in the federal courts.o And
turnabout is exactly what Letitia James is facing.
Starting in 2022, James famously waged a civil case against Trump, >eventually securing a half billionudollar penalty against him at the--
same time that he was running for president. (The damages were thrown
out as unconstitutional in a recent New York appellate court decision.)
The charge that James brought against Trump was uwait for itu >misrepresenting facts about properties he owned in order to secure a
lower interest rate.
If there were ever to be a case where ounclean handso barred a defendant >from claiming vindictive prosecution, United States v. James should be it.
JamesA case against Trump was especially egregious for two reasons.
First, as a Democrat, she was using her prosecutorial power to try to >destroy not only a political opponent but the leading presidential
candidate of the opposing party. Second, she was using a New York
statute in a fashion it had almost never been used before, in order to
catch Trump without having to prove that any bank had relied on his
alleged misrepresentations or that Trump had in fact paid a lower
interest rate as a result.
By contrast, the case against James herself is more straightforward.
James is alleged to have committed standard-issue home mortgage fraud, >stating on her loan application that the Virginia property in question
was a second home, entitling her to a lower rate, when in fact she
intended to rent it out and did rent it out.
But the governmentAs case is hardly open and shut. James could claim
that at the time she sought the loan, she did in fact intend to occupy
the property as a second home, and disproving such a claimed intention
may not be easy.
What is easy, however, is hoisting James on her own petard.
In her 2018 victory speech after being elected attorney general, she >promised to shine oa bright light into every dark corner of [TrumpAs]
real estate dealings, and every dealing, demanding truthfulness at every >turn.o In a 2024 X post, defending her prosecution of Trump, she wrote, >oWhen powerful people cheat to get better loans, it comes at the expense
of hardworking people. Everyday Americans cannot lie to a bank to get a >mortgage, and if they did, our government would throw the book at them. >There simply cannot be different rules for different people.o You canAt
make that up.
Federal prosecutions for mortgage fraud are by no means unheard of. Over
the past 12 years, close to 3,000 people were reportedly convicted of >federal mortgage fraud. This is important, because if TrumpAs case
against James was legally unprecedented (as was JamesA case against
Trump), that could have been strong evidence of an impermissible
selective prosecution. Of those who received prison time for federal >mortgage fraud, the average sentence was 21 months.
There is a legal doctrine called ounclean hands.o It holds that a party >seeking equitable relief from a court cannot get it if that party
committed egregious misconduct identical or similar to the alleged >misconduct the party is complaining about. If there were ever to be a
case where ounclean handso barred a defendant from claiming vindictive >prosecution, United States v. James should be it.