New York Attorney General Letitia James, known for her strong stance against Trump, is now facing a federal criminal investigation over fraud allegations that came to light last month.
Reports trace back to 1983, indicating that James allegedly falsified real estate documents linked to herself and her father. There are suggestions that she may have improperly listed herself in various records.
“I hereby declare that I intend to occupy this property as my primary residence,” she stated.
In 2001, she acquired a multi-unit property in Brooklyn but reported it as having only four units, contrary to previous filings that indicated five. Federal Housing Finance Director William Plute has expressed in a letter sent to U.S. Attorney General Pam Bondy that James may have altered unit counts to qualify for loans from Fannie Mae and Freddie Mac.
Recently, in August 2023, James and family bought a home in Norfolk, Virginia. In legal documents associated with this purchase, she noted that New York law mandates that statewide office holders reside full-time in New York.
According to Plute, these misrepresentations could have allowed James to “secure a reduction in mortgage rates” and gain “government support” for her mortgages. He has urged the Department of Justice to probe her for possible crimes including wire, mail, and bank fraud, as well as making false statements to financial institutions.
In what seems to be a reaction to Plute’s referral, the FBI and the U.S. Attorney’s Office in Albany have initiated a criminal investigation into James. Federal prosecutors in Maryland have mentioned gathering evidence for a potential jury. Similarly, a judge in Virginia noted that he had been summoned for evidence linked to the Norfolk property.
Both the FBI and James’ office declined to comment when approached.
James labeled the allegations as “basically unfounded,” suggesting that they were retaliatory motives from the Trump administration due to her lawsuit against the Trump organization. In that case, she accused Trump and his associates of securing favorable lending terms from banks and insurance companies.
While the New York judiciary has previously sided with James in this case, issuing a striking $450 million ruling, the matter is still under appeal, and the New York Court of Appeals has hinted at a potential reduction.
For the current legal issues, James’ office has procured an attorney to represent her, raising concerns that New York taxpayers are funding her defense against these allegations of mortgage fraud.
Moreover, her lawyer, Abbe Lowell, has become well-known for representing various anti-Trump figures, including Hunter Biden, who faced tax evasion charges, though he was ultimately pardoned by President Biden.
In response to Plute’s letter concerning James, Lowell sent a letter to Bondi, claiming that the accusations were “scattered” and the evidence presented was selective.
Lowell argued that when James graduated from law school in 1983 at age 24, her father filled out a mortgage application without her involvement. However, documentation reportedly shows her signature in a questionable context related to her father’s application.
At 66, Letitia James has never been married.
Lowell also suggested that official records indicate James used her Brooklyn residence as a four-unit dwelling, asserting that she has maintained this designation since purchasing it in 2001.
For the Virginia property, he claimed that prior to a power of attorney document, James explicitly communicated to the mortgage broker that it was “not my primary residence.” The broker, as claimed by Lowell, understood this and classified her as “a co-borrower under occupation.”
While James and her legal team continue to make their assertions, legal expert Jonathan Turley remarked that the evidence against her is compelling. He suggested that in her aggressive pursuit of Trump, she may have unintentionally set legal standards that could backfire on her.
“She has emphasized that strong individuals should not get a free pass,” Turley commented.
