A source close to the investigation has revealed that the FBI, along with the U.S. Attorney’s Office in Albany, New York, has embarked on a criminal investigation concerning possible mortgage fraud involving New York Attorney General Letitia James. Interestingly, James previously aimed to prosecute former President Donald Trump on various criminal charges.
This inquiry, first reported by the Albany Times Union, follows a request from Federal Housing Finance Agency Director William Pulte, who asked the Department of Justice (DOJ) to investigate James last month. This referral was sent to the Northern District of New York, led by U.S. Attorney John Sarcone III.
Rep. Elise Stefanik (R-N.Y.), representing the district where the investigation originated, praised the actions of the FBI and Albany prosecutors. She remarked that “the investigation into Letitia James is a vital step toward justice,” vowing to continue her efforts to expose corruption and hold Democrat leaders in New York accountable.
Pulte’s letter claims that James “falsified records” to obtain favorable loans for a Brooklyn brownstone she has owned since 2001, as well as a Virginia property she bought in 2023. The brownstone is a townhome style commonly found in historic urban areas, noted for its red-brown sandstone exterior and grand staircases.
Furthermore, James allegedly overstated the number of units in her Brooklyn residence and declared that her Virginia house would serve as her “principal residence” while she is New York’s top law enforcement official.
Pulte stated that it appears James falsified records to satisfy lending requirements and secure advantageous loan terms for both properties. Possible criminal charges could include wire fraud, mail fraud, bank fraud, and making false statements to a financial institution.
The FBI and U.S. Attorney’s Office in Albany did not immediately respond to requests for comments on Thursday. James has characterized the allegations as “baseless,” asserting that the referral is part of a “revenge tour” initiated by the president after she filed civil fraud charges against him and his company, the Trump Organization.
Interestingly, during her 2019 inquiry into Trump, which ultimately led to a $454 million judgment against him and his real estate firm, James declared that “no one is above the law.”
Abbe David Lowell, a prominent attorney representing Hunter Biden, has now been employed by the New York AG’s Office as special counsel. Reports indicate that Lowell’s hiring is funded by taxpayers, as it was done through the attorney general’s office rather than in her personal capacity.
There’s a proposed clause that would create a $10 million slush fund for state officials to cover “reasonable” legal fees related to investigations, even those outside their official duties. This has raised questions among locals regarding the use of taxpayer money.
Despite this, a representative from James’ office mentioned that she plans to address the situation utilizing both state funds and a private legal defense fund.
Lowell’s critical letter to Bondi last month characterized the mortgage fraud allegations as merely another salvo in Trump’s “revenge tour” against the attorney general.
Lowell pointed out, “These baseless and long-discredited allegations… are suddenly back in the news just days after President Trump publicly attacked Attorney General James.” He asserted that if prosecutors are genuinely seeking the truth, they would face “false claims with facts.”
America First Legal (AFL), a legal watchdog group associated with the Trump administration, recently filed a formal complaint against James with the Committee on Professional Standards of the New York State Unified Court System, which manages disciplinary issues concerning licensed attorneys in New York.
AFL’s letter contended that if James deceived lenders and the government to secure financial advantages, she would have violated professional obligations and could face discipline by the New York Bar.
Key Allegations Against Donald Trump by Letitia James
In September 2022, James instigated a civil lawsuit against Trump, the Trump Organization, and several executives, including his adult children. The lawsuit alleges a pattern of fraud occurring between 2011 and 2021, which includes:
- Inflating and deflating asset values on financial documents to secure better loan terms, insurance, and tax benefits.
- Issuing false financial statements that misrepresented Trump’s net worth by billions.
- Falsifying business records and making materially inaccurate statements to financial institutions.
- Submitting false information to insurers, constituting insurance fraud.
- Engaging in conspiracies to commit these fraudulent acts, violating multiple provisions of New York law.
