Ed Martin, a lawyer with the Justice Department, was spotted inspecting the property owned by Letitia James, the New York Attorney General, in Brooklyn, as part of a federal mortgage fraud investigation. This visit occurred on a Friday and followed Martin’s recent appointment by Attorney General Pam Bondy, coinciding with a mortgage fraud investigation involving Senator Adam Schiff.
Federal judges in Virginia and Maryland are now focusing on claims that both James and Schiff are facing accusations of falsifying property records to secure better loan terms.
At 296 Lafayette Avenue, James’ residence is officially categorized as a five-unit building. However, she allegedly misreported it as having four units in various official documents like mortgage applications and permit requests. This misrepresentation is said to have enabled her to qualify for more favorable loan conditions through Fannie Mae and Freddie Mac.
During Martin’s inspection, he took note of the entrance setup, including one doorbell at the main entrance and four others in the side entrance, all marked with worn labels indicating different floors. Neighbors became curious and confronted Martin, questioning his reasons for being in their neighborhood.
One of the residents, described as a middle-aged woman in gym attire, asked Martin directly why he was there, asserting her familiarity with the neighborhood. Martin responded, stating he was simply looking at the house, characterizing it as an important location. The neighbor challenged him, suggesting that it looked similar to other homes in the area.
The scrutiny on James’ real estate began back in April, when Bill Pulte, the director of the Federal Housing and Finance Agency, referred potential criminal activity to the Justice Department. He alleged that James had falsified bank documents and property records in an effort to obtain government assistance and more favorable loan terms.
The investigation also includes accusations that James and her father had listed themselves as “husband and wife” on mortgage documents to comply with lending regulations. Both parties have denied any wrongdoing.
Martin remarked on the origin of the investigation, attributing it to the referral from Pulte and pointing out that, as both James and Schiff often claim, “No one is beyond the law.”
Special counsels like Martin typically have the authority to handle criminal cases, including investigations in high-profile situations, and can operate outside of the jurisdictions where such cases arise.
