New York Attorney General Letitia James dodges questions about mortgage fraud allegations as federal criminal referral threatens her career.
Quick Takes
- Federal Housing Finance Agency has sent a criminal referral to the Department of Justice alleging James committed mortgage fraud
- James is accused of falsely claiming her father was her husband on property documents and misrepresenting a five-unit property as four units
- The accusations mirror charges James herself brought against Donald Trump, creating significant irony
- When confronted at her Brooklyn home, James avoided reporters and pretended to be on the phone
- Potential charges include wire fraud, mail fraud, and false statements to financial institutions
Criminal Referral Details Serious Allegations
The Federal Housing Finance Agency (FHFA) has referred New York Attorney General Letitia James to the Department of Justice over allegations of mortgage fraud. FHFA Director William Pulte sent a letter to Attorney General Pam Bondi and Deputy AG Todd Blanche detailing claims that James falsified records to meet lending requirements and secure favorable loan terms. The allegations include misrepresenting a property in Virginia as her principal residence and falsely classifying a New York five-family property as a four-unit structure to qualify for specific loan programs not available for larger multi-family buildings.
Perhaps most startling among the accusations is that James allegedly listed her father as her husband on property documents from 1983 and 2000, effectively filing as a married couple. This misrepresentation could constitute fraud under federal statutes. The referral includes potential violations such as wire fraud, mail fraud, bank fraud, and making false statements to financial institutions – serious charges that could have devastating consequences for the state’s top prosecutor.
The mortgage fraud accusations against NYS AG Letitia James are serious and cannot be written off as politically motivated. Here’s the roadmap why – having covered corporate accounting scandals, taxes and the IRS, the details here are pretty overwhelming. Again, these are… pic.twitter.com/H2jPCXXHN3
— Elizabeth MacDonald (@LizMacDonaldFOX) April 16, 2025
The Irony Not Lost on Legal Experts
Fox News contributor and legal scholar Jonathan Turley highlighted the profound irony of the situation given James’s high-profile legal actions against former President Donald Trump. “This is a person who prosecuted Trump for everything short of ripping a label off a mattress, and among the charges that were brought in New York, in just the civil but the criminal case, was making false or misleading statements to financial institutions. As for James, if we apply the Letitia James standard that she created, there’d be little question here. This seems pretty straightforward.”
James previously led a civil fraud case against Trump resulting in a $454 million judgment, which is currently under appeal. The similarities between her allegations against Trump and those now directed at her have not escaped notice. Retired NYPD inspector Paul Mauro noted that James “appears to have engaged in the very sort of fraud which she alleged in her ludicrous case against Donald Trump.” Trump himself has called for her immediate resignation, describing her as a “totally corrupt politician” and “wacky crook.”
Silent When Confronted
When reporters attempted to question James outside her Brooklyn home about the accusations, she noticeably avoided addressing the scandal. According to the New York Post, James pretended to be engaged in a phone conversation while walking to her car, refusing to acknowledge questions about the allegations. This behavior stands in stark contrast to her public persona as a crusader for accountability, famously stating that “no one is above the law” during her proceedings against Trump.
James’s office has issued a statement claiming she “is focused every single day on protecting New Yorkers, especially as this Administration weaponizes the federal government against the rule of law and the Constitution. She will not be intimidated by bullies — no matter who they are.” The statement did not directly address the specific allegations regarding mortgage fraud or misrepresentation on loan documents but instead characterized the referral as politically motivated.
Potential Legal and Political Consequences
Documents appear to show clear discrepancies in how properties were classified and relationships represented. FHFA Director Pulte was explicit in his letter: “Ms. James, for both properties listed above, appears to have falsified records in order to meet certain lending requirements and receive favorable loan terms.”
While some critics suggest the criminal referral might be retaliatory given James’s numerous legal actions against the Trump administration, FHFA officials have denied this characterization. The Department of Justice has not yet responded to the allegations, leaving the next steps unclear. If formal charges are pursued, James could face not only legal jeopardy but significant damage to her political standing. For now, the Attorney General who has built her reputation on holding others accountable finds herself in the uncomfortable position of being unable to avoid scrutiny of her own actions.
