Shocking Twist: Letitia James Referred for Criminal Charges — For the Same Actions She Prosecuted Trump Over
In early 2024, New York Attorney General Letitia James made headlines when she won a civil fraud case against Donald Trump, alleging he "inflated the value" of his properties to secure more favorable loan terms. Following the verdict, James declared her commitment to justice, saying: “White collar financial crime is not a victimless crime.” She insisted her office would pursue such misconduct no matter who the perpetrator was.
She added, “When the powerful break the law and take more than their fair share, there are fewer resources available for working people, small businesses, and families.” And she doubled down, stating that “everyday Americans cannot lie to a bank about how much money they have in order to get a mortgage to buy a home … and if they did, the government would throw the book at them.”
Now, it seems James herself may be in hot water — for the very kind of financial behavior she condemned in Trump’s case.
According to Just the News, Federal Housing Finance Agency (FHFA) Director William Pulte referred James to the Department of Justice earlier this week. His letter to Attorney General Pam Bondi highlighted potential “irregularities in a series of loans James obtained” on two different properties. The FHFA found evidence suggesting possible violations of federal criminal statutes involving “falsified bank documents and property records to acquire government-backed assistance and loans and more favorable loan terms.”
Specifically, James is accused of misrepresenting her “residence status for a Norfolk, Virginia-based home” in order to receive a better mortgage rate in 2023. The irony? At the time, she was serving as New York’s attorney general — a role that legally requires her to reside in New York State.
Why would this be a big deal? Because “primary residence mortgages receive more favorable loan terms, including lower interest rates,” as Pulte’s letter noted. Banks see loans for secondary residences as riskier, often charging 0.25-0.50% higher interest rates — or more, depending on the lender. So claiming a property as a primary home when it isn’t could be seen as an effort to secure better financial terms under false pretenses.
And the evidence doesn’t stop there. The FHFA pointed out that a July 2024 building permit for her New York property listed it as the “JAMES RESIDENCE” and explicitly stated that it would “Remain Occupied.” That conflicts with her claim of a primary residence in Virginia at the same time.
Then there’s a second property — a multi-unit building in Brooklyn. Loan documents filed by James between 2001 and 2019 reportedly listed the building as having four units or fewer, which is critical because certain loans and benefits only apply to smaller properties. But records show that the building has had five units since 2001, potentially making her ineligible for those benefits.
Pulte didn’t mince words. He stated that James’ conduct “could be violations of the criminal code under 18 U.S.C. § 1343 (wire fraud), 18 U.S.C. § 1341 (mail fraud), 18 U.S.C. § 1344 (bank fraud), 18 U.S.C. § 1014 (false statements to a financial institution), and/or other relevant state and federal laws.”
While no formal federal investigation has been announced, the allegations are already drawing sharp scrutiny — not only because of the legal implications but because of the public stance James has taken on financial misconduct. As she once said of Trump, “The scale of Donald Trump’s fraud is staggering, and so is his ego.”
Her critics now point to what they call political hypocrisy — the idea that some officials push hard against their opponents for actions they themselves may be engaging in. As one longstanding rule in politics goes: the louder someone accuses others, the more likely they’re guilty of the same behavior.
And if these allegations are true, it could be more than just a legal issue. It could mark a serious credibility blow for an attorney general who rose to national prominence by promising to hold the powerful accountable.
James herself summed up the stakes best: “White collar financial crime is not a victimless crime.” If the same standards are applied to her, the consequences may be just as serious as the ones she sought for others.