New York Attorney General Letitia James faces federal mortgage fraud allegations that mirror charges she previously brought against former President Donald Trump, as the Federal Housing Finance Agency refers her case to the Department of Justice.
Quick Takes
- Federal Housing Finance Agency Director William Pulte has sent a criminal referral to the DOJ alleging Letitia James committed mortgage fraud by falsifying records on multiple properties
- James allegedly misrepresented a multi-unit property’s structure and falsely listed her father as her husband on loan documents
- The Attorney General has refused to address these allegations, even pretending to be on a phone call when confronted by reporters
- These allegations come with potential charges of wire fraud, mail fraud, and false statements to financial institutions
- Critics point to the irony that James prosecuted Trump for similar alleged misrepresentations to financial institutions
Federal Criminal Referral Details Serious Allegations
The Federal Housing Finance Agency has referred New York Attorney General Letitia James to the Department of Justice for potential prosecution over mortgage fraud allegations. FHFA Director William Pulte claims James falsified records to meet lending requirements and secure favorable loan terms on multiple properties. The referral includes potential violations for wire fraud, mail fraud, bank fraud, and making false statements to financial institutions.
According to the referral letter sent to Attorney General Pam Bondi and Deputy AG Todd Blanche, James allegedly misrepresented a property in Virginia as her principal residence when it wasn’t, and incorrectly described a New York property as a four-unit structure instead of five units. Perhaps most shockingly, she’s accused of falsely claiming her father as her husband on property documents from 1983 and 2000, potentially to file as a married couple and receive more favorable treatment from lenders.
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
James Dodges Questions As Scrutiny Intensifies
When confronted by reporters outside her Brooklyn home seeking comment on the growing scandal, James avoided questions by pretending to be on a phone call. Her office has issued a defiant statement claiming she “will not be intimidated by bullies,” but has not directly addressed the specific fraud allegations contained in the federal referral.
James has previously portrayed herself as a champion against financial fraud, famously declaring that “no one is above the law” during her high-profile civil fraud case against President Donald Trump. That case resulted in a $454 million judgment against Trump, which is currently under appeal. The current allegations against James create a stark contrast with her public persona as a fraud fighter, particularly as they involve similar misrepresentations to financial institutions that formed the basis of her case against Trump.
Legal Experts Point to Potential Consequences and Irony
Legal analysts have highlighted the irony of the situation. Fox News contributor Jonathan Turley has been particularly vocal about this apparent contradiction, suggesting that James’ previous prosecutorial standard could now be applied to her own actions. Some critics view the timing of these allegations as potentially retaliatory, though FHFA officials deny any political motivation behind the referral.
“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,” said Turley.
While the Department of Justice has not yet responded to the criminal referral, the allegations pose potentially serious legal and political consequences for James. Trump has already called for her resignation, describing her as a “totally corrupt politician” who should “resign from her position as New York State Attorney General, IMMEDIATELY.” James, who has led multiple legal actions against the Trump administration in 2025, now finds herself on the defensive as the federal government examines her own potential legal violations.
