You know, when people ask me why good people end up in bad situations, I usually bring up the fraud triangle — pressure, rationalization, and opportunity.

I’ve watched play out over and over again — in my own life, and in hundreds of others who never thought they’d be sitting in a courtroom.

Now you’ve got Letitia James — New York’s Attorney General — facing a federal indictment.
And when you look at what prosecutors say she did, you can see that triangle clear as day.

Back in 2020, she bought a house in Norfolk, Virginia — about $137,000.
She took out a $109,600 mortgage from OVM Financial, backed by Fannie Mae.

To get a better rate, she signed what’s called a Second Home Rider.
Basically, that means: I’ll live here part-time. I won’t rent it out.
That little promise drops your interest rate.

But according to the indictment, she didn’t live there. She rented it out.
And for four straight years, she listed it on her ethics forms as an investment property.
On her taxes, she reported rental income and took deductions.

So, one story to the bank. Another to the state. Another to the IRS.
That’s what they’re calling bank fraud — misrepresenting how you’ll use the property to get a benefit you shouldn’t have.

The alleged “loss”? About $18,900 over the life of the loan — the savings from that lower interest rate.

And that’s all prosecutors need. It’s not the amount — it’s the intent and the false statement that makes it a crime.

Here’s where I think about the triangle.

Pressure

Pressure’s not always easy to identify. It’s not bankruptcy or greed or some big secret.
It’s the everyday kind — trying to save money, get a better deal, feel like you’re making a smart move.

That’s probably what was going on here.
She wasn’t trying to steal from a bank. She saw a way to make the numbers work.

We all face that same kind of pressure — it’s quiet, but it’s constant.
You tell yourself, “If I check this box, I get a better rate. Everyone does it.”
And that’s the problem — those little decisions never feel criminal.

Rationalization

This is where people start convincing themselves they’re fine.

I’ve heard it from hundreds of people:
“It’s just paperwork.”
“It’s a technicality.”
“I’ll fix it later.”

That’s probably what she told herself.
That it didn’t really matter because she could technically still visit the property. Or that it wasn’t hurting anyone.

But once you start explaining away small things, you start losing sight of the line.
That’s how people who think of themselves as honest end up signing things that aren’t true.

And in her case, she might’ve thought: “Come on, no one prosecutes this kind of thing.”
Until they do.

Opportunity

The opportunity here was simple.

She filled out a loan application and saw a way to benefit from it.
Check the box that says “second home,” sign the rider, and nobody’s ever going to show up to see how the house is being used.

That’s how it works. Banks don’t go checking whether you actually sleep there.
And when you’re the Attorney General, people assume your word’s good.

That’s the real opportunity — not her title, but the trust that came with it.

She knew the system. She knew what lenders look for, what they don’t.
And that made it easy to believe she could bend a rule and move on.

Put it all together:
Pressure to save money.
Rationalization that it’s harmless.
Opportunity to get away with it.

That’s the triangle.
And if you take her name off it, it’s the same story I’ve heard from business owners, accountants, lawyers, doctors — people who thought they were just managing a detail, not committing a crime.

I do have sympathy for her. I really do.
Because I’ve met so many people who said the same words she probably has: “I didn’t mean to.”

But sympathy doesn’t mean a free pass.

If she did what they say she did, she shouldn’t be treated differently just because she used to be the prosecutor.
She did what she once punished others for.

That’s why I keep saying:
No two-tiered justice. Not for her. Not for anyone.

Thanks for reading!

Justin Paperny