In a bold move, the Trump administration referred New York Attorney General Letitia James for possible prosecution over allegations of mortgage fraud. The referral signals a dramatic turn in the ongoing legal battles between red-state leadership and blue-state officials who have long used their offices to target political opponents. James, a Democrat known for her relentless pursuit of President Donald Trump, now finds herself under scrutiny for the very kind of financial misconduct she has accused others of—a development many see as long overdue accountability.
On Tuesday, Federal Housing Finance Agency (FHFA) Director William Pulte filed a federal criminal referral to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche, accusing New York Attorney General Letitia James of falsifying mortgage records. According to the referral, James allegedly claimed property in Virginia as her "principal residence" in 2023—while still serving as a prosecutor in New York—to obtain home loans. She reportedly misrepresented a New York property as having four units instead of five, which could have qualified her for a more favorable loan. These allegations come just weeks before James launched a high-profile civil fraud trial against the Trump Organization, which resulted in a $454 million judgment.
Pulte also cited documents showing that James purchased another property with her father as a co-signer but falsely listed them as “husband and wife” on mortgage applications in both 1983 and 2000. While the filings are decades old, Pulte argued that they still raise serious concerns about James’s honesty and accuracy in providing information on official mortgage documents.
“Ms. James, for both properties listed above, appears to have falsified records in order to meet certain lending requirements and receive favorable loan terms,” Pulte wrote Bondi and Blanche.
The revelation could result in criminal charges against James, including wire fraud, mail fraud, bank fraud, and false statements to a financial institution.
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