Federal authorities have referred New York Attorney General Letitia James to the Department of Justice for possible criminal investigation, alleging she falsified records in multiple real estate transactions to secure favorable mortgage terms. The referral, sent by Federal Housing Finance Agency (FHFA) Director William Pulte, outlines a series of alleged misrepresentations involving properties in both Virginia and Brooklyn, New York, and comes at a politically charged moment given James’s high-profile legal battles with former President Donald Trump.

Allegations Detailed

According to the FHFA’s referral letter, James allegedly:

• Claimed a Norfolk, Virginia, property purchased in 2023 as her “principal residence” on mortgage documents, despite being legally required as New York’s attorney general to maintain her primary residence in New York.
• Co-signed a $218,000 mortgage with her sister for the Virginia property, with loan terms stipulating both borrowers must occupy the home as their principal residence for at least a year.
• Misrepresented a Brooklyn building as a four-unit dwelling on mortgage and permit documents, though records show it is a five-unit property. This discrepancy could have allowed her to qualify for a lower interest rate and reduced monthly payments under federal loan programs.
• In past transactions, listed her father as her husband on mortgage applications, further raising questions about the accuracy of her filings.

The FHFA claims these actions could constitute violations of federal statutes, including wire fraud, bank fraud, and making false statements to financial institutions.

Political and Legal Fallout

The timing and nature of the referral have sparked intense political debate. James, who led the successful civil fraud case against Donald Trump and his organization, now faces allegations similar to those she prosecuted against others. Trump and his allies have seized on the news, calling for her immediate resignation and accusing her of hypocrisy.

A spokesperson for James’s office dismissed the referral as politically motivated, stating, “Attorney General James 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”.

Legal experts note the irony and gravity of the situation. “Either it’s your principal residence or it’s not. Either you’re married to your father or he’s your father,” said George Washington University law professor Jonathan Turley, highlighting the seriousness of the alleged misstatements. If substantiated, the allegations could lead to charges including wire fraud, mail fraud, bank fraud, and false statements to a financial institution.

Next Steps

No official charges have been filed, and the Department of Justice is reviewing the referral. The investigation is expected to scrutinize property records, mortgage documents, and related filings spanning decades. The outcome could have significant implications for James’s political future and public trust in her office.

As the case unfolds, it underscores a central theme James herself has championed: that no one is above the law, including those who enforce it.