The New York Attorney General who campaigned on targeting President Donald Trump is now facing serious legal trouble of her own. Letitia James, the Democrat who spearheaded a politically charged civil fraud case against Trump and secured a $454 million judgment, has been hit with a criminal referral over alleged mortgage fraud involving multiple properties.
According to a letter from Federal Housing Finance Agency (FHFA) Director William Pulte, reviewed by Fox News and the New York Post, James allegedly falsified records on mortgage applications to secure more favorable loan terms. The referral was sent to U.S. Attorney General Pam Bondi and Deputy Attorney General Todd Blanche, outlining potential violations including bank fraud, wire fraud, mail fraud, and false statements to a financial institution.
The letter alleges that in 2023—while still serving as New York Attorney General—James listed a property in Norfolk, Virginia, as her primary residence to obtain a lower mortgage rate. The problem? As Attorney General, James is legally required to reside in New York. The Virginia property purchase occurred just weeks before her trial against Trump began, casting further suspicion on her conduct.
“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,” Pulte wrote.
But the Virginia property isn’t the only issue. Pulte also cited another property in Brooklyn, purchased by James in 2001, which she allegedly misrepresented on building permits and mortgage documents as having four units, when it in fact has five. This false claim may have qualified her for federal housing aid under HAMP, leading to reduced payments and favorable terms.
In a third instance, James and her father allegedly falsely claimed to be “husband and wife” on mortgage documents in the 1980s and again in 2000—raising serious questions about her honesty in financial dealings stretching back decades.
The documents were originally uncovered by the watchdog outlet White Collar Fraud, and now face fresh scrutiny under the microscope of federal investigators.
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