Trump administration refers NY AG Letitia James for potential prosecution over alleged mortgage fraud

Allegations of Mortgage Fraud Against NY Attorney General Letitia James

New York Attorney General Letitia James, known for her legal actions against former President Donald Trump, is now facing allegations of mortgage fraud. A federal criminal referral was issued by William Pulte, Director of the Federal Housing Finance Agency, to Attorney General Pam Bondi and Deputy AG Todd Blanche, accusing James of falsifying records to secure home loans under favorable terms.

Details of the Allegations

The allegations suggest that James misrepresented a property in Virginia as her “principal residence” in 2023, despite her obligation to reside in New York due to her role as a state prosecutor. This discrepancy was noted shortly before James initiated a civil fraud trial against the Trump Organization, which concluded with a significant financial judgment against the organization.

Further accusations include James purchasing a multi-family dwelling in Brooklyn and misrepresenting it as having fewer units than it actually does, to benefit from more advantageous loan conditions. Documents also reveal that in past property dealings, James and her father were incorrectly listed as “husband and wife” on mortgage applications, raising questions about the integrity of her financial declarations over the years.

Response from James’ Office

In defense, a spokesperson from James’ office stated that the Attorney General remains committed to her duties and will not be deterred by intimidation. The statement emphasized her focus on protecting New Yorkers and upholding the rule of law amidst what they describe as the federal government’s misuse of power.

Potential Legal Implications

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According to Pulte, the discrepancies and falsifications in James’ records could lead to serious criminal charges including wire fraud, mail fraud, bank fraud, and making false statements to a financial institution. Legal experts have commented on the severity of the allegations, noting the irony of James facing similar charges to those she has previously enforced against others, particularly Donald Trump.

Trump’s Reaction

Amid these developments, former President Trump has been vocal in criticizing James, calling her a “totally corrupt politician” and suggesting her immediate resignation. Trump’s comments reflect ongoing tensions between him and James, particularly following her legal challenges against him and his business practices.

Broader Investigations

The same day the criminal referral was made public, James’ office was also reviewing potential insider trading related to President Trump’s announcements affecting market tariffs. This scrutiny comes amidst broader investigations by James’ office into various activities associated with Trump and his administration.

The unfolding situation highlights ongoing legal and political battles, with significant implications for both James and the broader political landscape in New York and nationally.