A Criminal Inquiry into New York's AG, Letitia James: Mortgage Fraud Allegations
Investigation Launched: U.S. Department of Justice Initiates Criminal Probe against New York's Chief Legal Officer - Investigation Launched: Criminal Probe Initiated by U.S. Department of Justice against New York's District Attorney
The U.S. Department of Justice (DOJ) has moved to investigate New York's Attorney General, Letitia James, on allegations of mortgage fraud. This investigation emerges from a referral made by the Federal Housing Finance Agency (FHFA) Director, William Pulte. Here's a rundown of the events and recent advancements:
Chronology and Background:
- April 2025: Pulte refers the case to the DOJ, accusing James of forging mortgage documents regarding properties in Norfolk, Virginia, and Brooklyn, New York[1][2].
- May 8, 2025: The DOJ announces the initiation of a formal, criminal investigation into James, centered on real estate transactions and potential deception[1][3].
- May 9, 2025: Rumors surface of a grand jury in the Eastern District of Virginia issuing subpoenas linked to James' alleged misrepresentation of a Virginia home as her main abode[2].
Charges and Specifics:
- Virginia Home Controversy: James is implicated in falsifying records to secure advantageous mortgage rates on a Norfolk property, despite her domicile being in New York City. A power-of-attorney license gave her niece the authority to execute the deal, with the paperwork citing the property as James' primary residence[1].
- Brooklyn Brownstone Dispute: The attorney general is also accused of misleading lenders by portraying a five-unit Brooklyn brownstone as a four-unit property. This deception may have facilitated access to more generous loan terms for smaller family homes[1][3].
- 1983 Mortgage Scandal: A further charge involves a 1983 mortgage document, where James and her father supposedly signed as husband and wife, possibly to adhere to loan eligibility standards. There's also speculation they listed themselves as married in documentation from May 2000[1].
Recent Events:
- James' attorney, Abbe Lowell, dismisses the allegations as unfounded and politically motivated, suspecting they stem from former President Donald Trump, given James' earlier role in a civil fraud case against him[2].
- This investigation represents a unique instance of a law enforcement official, who has previously pursued legal action against Trump, facing such scrutiny[3].
The DOJ and FBI have maintained silence on the ongoing probe, implying it forms part of a larger criminal investigation[2][3].
- The United States Department of Justice (DOJ) initiated a formal, criminal investigation into Letitia James, the Attorney General of New York, concerning real estate transactions and potential deception, following a referral from the Federal Housing Finance Agency (FHFA) Director, William Pulte.
- In April 2025, Pulte referred the case to the DOJ, accusing James of forging mortgage documents regarding properties in Norfolk, Virginia, and Brooklyn, New York, which led to the initiation of the investigation.
- James is implicated in various allegations, such as falsifying records to secure advantageous mortgage rates on a Norfolk property, misleading lenders by portraying a five-unit Brooklyn brownstone as a four-unit property, and possibly signing a 1983 mortgage document with her father as husband and wife to meet loan eligibility standards.
- The United States Media, including the Washington Post and Guardian Media Group, has reported on James' ongoing investigation, but the DOJ and FBI have remained silent, suggesting the probe is part of a larger criminal investigation.
- Abbe Lowell, James' attorney, has dismissed the allegations as unfounded and politically motivated, suggesting they may stem from former President Donald Trump, given James' earlier role in a civil fraud case against him.
