NY Attorney General Letitia James Under Criminal Investigation for Alleged Mortgage Fraud
New York Attorney General Letitia James, who has built her public image on attacking President Donald Trump and declaring that “no one is above the law,” now finds herself the subject of a federal criminal investigation.
According to Fox News, the Justice Department, led by U.S. Attorney General Pam Bondi, has launched a probe into James over allegations of mortgage fraud. In a parallel development, a grand jury in the Eastern District of Virginia has begun issuing subpoenas related to claims that James misrepresented a Virginia home as her primary residence in order to obtain more favorable mortgage terms.
The investigation stems from a criminal referral made by Federal Housing Finance Agency Director William Pulte—an appointee of the Trump administration—who raised concerns over multiple instances in which James allegedly submitted false information on mortgage applications.
Pulte's referral outlines two cases in particular: the first involving a 2023 property in Norfolk, Virginia, and the second concerning a five-family home in Brooklyn, which James allegedly misrepresented as a four-family unit on various building permits and loan documents.
In his letter to James and Deputy Attorney General Todd Blanche, Pulte wrote that James had “falsified records” to obtain better loan terms for the Virginia home while claiming it as her primary residence, despite being required by law to maintain her primary residence in New York due to her role as the state’s attorney general.
“Ms. James was the sitting Attorney General of New York and is required by law to have her primary residence in the state of New York — even though her mortgage applications list her intent to have the Norfolk, VA, property as her primary home,” the letter said.
“It appears Ms. James’ property and mortgage-related misrepresentations may have continued to her recent 2023 Norfolk, VA property purchase in order to secure a lower interest rate and more favorable loan terms,” Pulte added.
The Brooklyn property in question was purchased in February 2001, and Pulte alleges that James “consistently misrepresented the same property as only having four units” on key documents and permit filings. He also included documentation showing James co-purchased another home with her father in the 1980s and again in 2000, identifying themselves as “husband and wife,” a potential red flag that could suggest past misrepresentations.
“While this was a long time ago, it raises serious concerns about the validity of Ms. James’ representations on mortgage applications,” Pulte stated.
Ironically, these allegations mirror the very accusations James has levied against President Trump, particularly in her legal pursuit accusing him of falsifying business records.
James’s legal team, however, was quick to dismiss the investigation as politically motivated retaliation. Her attorney, Abbe Lowell, responded to the allegations by referencing a prior communication with the DOJ.
“These baseless and long-discredited allegations, put to rest by my April 24 letter to the Department of Justice, are suddenly back in the news just days after President Trump publicly attacked Attorney General James,” Lowell said Thursday.
“This appears to be the political retribution President Trump threatened to exact that AG Bondi assured the Senate would not occur on her watch. If prosecutors are genuinely interested in the truth, we are prepared to meet false claims with facts,” he added.
A spokesperson for James echoed the same narrative, accusing the Trump administration of abusing its power: “Attorney General James is focused every single day on protecting New Yorkers, especially as this Administration weaponizes the federal government against the rule of law and the Constitution. She will not be intimidated by bullies — no matter who they are.”
Lowell doubled down in a letter to Attorney General Bondi, claiming the probe is rooted in political vengeance: “The stunning hypocrisy of President Trump’s complaint that the Justice Department had been ‘politicized’ and ‘weaponized’ against him is laid bare as he and others in his administration are now asking you to undertake the very same practice,” he said.
While Democrats continue to frame investigations into their own as partisan “witch hunts,” the facts of this case may speak for themselves. If the allegations are substantiated, Letitia James could be facing the very legal scrutiny she so frequently demands for others. And unlike her politically charged lawsuits, this time, the law may be coming for her.