Letitia James Just Slapped With MORE Bad News – KARMA!
A newly submitted bar complaint has placed New York Attorney General Letitia James under heightened ethical scrutiny, alleging she engaged in mortgage fraud and violated professional conduct rules. The complaint, brought by America First Legal (AFL), was filed with the Committee on Professional Standards and stems from serious allegations referenced in a recent criminal referral by the Federal Housing Finance Agency (FHFA).
According to AFL, the filing accuses James of falsifying financial documents and providing misleading information about real estate assets to secure federally backed home loans on more favorable terms. These actions, if verified, could constitute breaches of the New York Rules of Professional Conduct, which prohibit illegal conduct and prohibit attorneys from engaging in "dishonesty, fraud, deceit, or misrepresentation."
“If what Director Pulte uncovered is true, then we have a sitting state Attorney General who made false certifications to the United States in return for federal benefits,” stated Dan Epstein, Vice President of America First Legal. “For a state prosecutor who has maligned the President of the United States for political gain, public accountability will serve as a cure to Letitia James’ endless lawfare and abuse of power.”

The basis of the complaint lies in two key incidents outlined in the FHFA’s April 14 referral to the Department of Justice. The first involves an alleged misrepresentation by James when she purchased a residence in Norfolk, Virginia, reportedly declaring it as her primary home to qualify for reduced mortgage rates.
The second incident centers on a property in Brooklyn, New York, where James is said to have misreported the number of housing units. Records indicate she claimed the building had four apartments in both 2001 and 2019, allowing her to obtain loans with favorable terms under Fannie Mae and Freddie Mac guidelines. However, the property allegedly contained five units—a distinction that triggers stricter lending terms, including higher interest rates and steeper down payments.
“If the Director’s allegations are accurate, Ms. James should resign her office immediately,” said Nick Barry, Senior Counsel at AFL. “The people of New York deserve an Attorney General who upholds the highest ethical standards of the legal profession.”
AFL's filing argues that, if confirmed, these actions would significantly undermine public faith in the legal system. The group emphasized that disciplinary proceedings require only a “fair preponderance of the evidence”—a much lower threshold than the “beyond a reasonable doubt” standard used in criminal trials—and urged the Committee to pursue a full investigation.
Critics are now echoing James's own frequent assertion that “no one is above the law,” turning her words back on her amid calls for transparency and accountability.
In its conclusion, the complaint from America First Legal urges the Committee on Professional Standards to respond swiftly, warning that failing to act could erode public trust in the justice system.
Abbe Lowell, the prominent attorney representing James, has dismissed the claims as politically driven. He asserts the Virginia home was intended for James’s niece and attributes the discrepancy in the Brooklyn unit count to outdated records. Supporters of James suggest the timing of the complaint may be retaliatory, following her successful prosecution in a major civil fraud case against former President Donald Trump.
As of now, the Department of Justice is reviewing the matter, and no formal charges have been filed.