Trump Administration Refers NY AG Letitia James for Potential Federal Charges

Conservative voices are celebrating news that New York Attorney General Letitia James has been referred for potential federal prosecution, reportedly over "alleged mortgage fraud" — a move initiated by the Trump administration.

The development has sparked particular interest because of James’ past declaration that “no one is above the law,” a phrase she famously used during her high-profile civil case against the Trump Organization. That lawsuit concluded with a $454 million ruling against Donald Trump for allegedly inflating property values.

Now, that same statement has come back to haunt her, with critics claiming the “tables have now turned.” Conservative figures have highlighted the irony in her situation, with many calling it a case of “karma.”

Rep. Elise Stefanik (R-NY) quoted James' own words on X, declaring, “No one is above the law!” In similar fashion, Sen. Tom Cotton (R-Ark.) accused the AG of “shameful, partisan lawfare against President Trump — based on far less evidence than this.” Sen. Jim Banks (R-Ind.) insisted that “these allegations must be investigated thoroughly,” and Sen. Eric Schmitt (R-Mo.) mocked James’ past comments, writing: “Something, something… no one is above the law.”

Outkick founder Clay Travis also weighed in, stating: “New York AG Letitia James being prosecuted for lying about her assets to get a mortgage after prosecuting Trump for lying about his assets to get a bank loan would be too perfect. They always accuse you of what they actually did.”

Fox News host Laura Ingraham discussed the case on her show this week, adding more fuel to the already intense political firestorm.

According to a letter from Federal Housing Finance Agency (FHFA) Director William Pulte, James allegedly “falsified records” to obtain home loans for a property in Norfolk, Virginia, which she claimed as her “principal residence” in 2023. The issue? She was still actively serving as New York’s Attorney General — a role that legally requires residency within the state.

The timing of this reported incident is also notable: it occurred just weeks before James launched her civil trial against Trump in late August 2023.

The letter further alleges that her mortgage documents misrepresented the Virginia home as her primary residence — potentially enabling her to secure “a lower interest rate and more favorable loan terms.”

It doesn’t stop there. Back in 2001, James purchased a five-unit Brooklyn building but is accused of “consistently misrepresenting the same property as only having four units” on various permit applications and mortgage forms — a change that may have helped her qualify for reduced rates under federal loan programs.

Additionally, records from earlier decades reveal another discrepancy: in both 1983 and 2000, James and her father reportedly co-purchased a property, but the paperwork inaccurately listed them as “husband and wife.” Although this misstatement dates back years, the FHFA letter notes it could still “raise serious concerns about the validity” of her financial disclosures.

Much of the information in the referral echoes previous reporting from investigative outlet White Collar Fraud, which had earlier claimed James misstated her residency in Virginia and misrepresented the Brooklyn property’s size to obtain better mortgage deals.

Pulte concluded that, across both properties, James “appears to have falsified records” to meet loan criteria and secure more beneficial terms — charges now referred for further legal review.