Letitia James Under Federal Criminal Investigation Amid Allegations of Mortgage and Document Fraud

(TJV NEWS) Letitia James, New York’s attorney general and a prominent figure in legal battles against former President Donald Trump, is now facing a criminal investigation over alleged mortgage and document fraud, multiple outlets have reported. According to The Blaze, the probe follows accusations that James falsified real estate documents dating back to the early 1980s — including a 1983 application in which she and her father reportedly listed themselves as husband and wife.

The allegations, first brought to light in a letter last month from Federal Housing Finance Agency Director William Pulte to U.S. Attorney General Pam Bondi, claim James misrepresented the number of units in a Brooklyn property she purchased in 2001, lowering the unit count from five to four to qualify for favorable lending terms from Fannie Mae and Freddie Mac. Pulte asserted this was done to obtain a conforming loan and benefit from government-backed mortgage assistance programs — a charge that, if true, could constitute bank, mail, and wire fraud, as well as false statements to a financial institution.

The Blaze reports that in a separate real estate transaction in August 2023, James and a relative jointly purchased a home in Norfolk, Virginia. In a power of attorney document related to that purchase, James declared, “I HEREBY DECLARE that I intend to occupy this property as my principal residence.” This claim potentially conflicts with New York law, which mandates that statewide officeholders reside full-time in the state.

Following Pulte’s referral, the FBI and the U.S. Attorney’s Office in Albany have opened a formal criminal investigation, according to The Blaze.

The Guardian further reported that a grand jury has been impaneled in the Eastern District of Maryland to review evidence, while The Washington Post noted that prosecutors in the Eastern District of Virginia have also issued subpoenas related to the Norfolk transaction.

Neither the FBI nor James’ office responded to requests for comment from the New York Post.

James, who has branded the allegations as “baseless,” contends that the investigation is political retaliation for her civil suit against Donald Trump and the Trump Organization — a case that resulted in a $450 million judgment, which is currently under appeal. Ironically, James accused Trump of similar behavior in that lawsuit: inflating property values to secure favorable loans and insurance terms.

James has since retained prominent defense attorney Abbe Lowell, whose legal portfolio includes representing Hunter Biden. Lowell, also a vocal defender of other high-profile Democrats, argued in a letter to Bondi that the claims against James are “long-disproven” and based on “cherry-picked” evidence. He said the 1983 mortgage application was completed solely by James’ father, with no involvement from her — despite Times Union reporting that James’ signature appears on the document, directly above a reference listing her as her father’s “wife.” James has never been married.

Lowell also maintained that James properly listed her Brooklyn property as a four-unit residence, aligning with city records, and denied any intent to mislead lenders. However, Times Union cast doubt on whether a property owner could unilaterally alter a property’s unit count for tax and financing purposes.

Regarding the Norfolk property, Lowell said that two weeks before the power-of-attorney statement, James had informed the mortgage broker in writing that the home “WILL NOT be my primary residence,” and was instead intended for a relative. The broker, he said, designated James as a “non-occupying co-borrower.”

Legal expert Jonathan Turley, speaking to Fox News’ Laura Ingraham, described the evidence against James as “damning,” highlighting the irony that her own aggressive legal strategies may now backfire. “She insisted that these technicalities matter and that the powerful should not be given a free pass,” Turley said. “Well, that bill has come due.”

If the criminal investigation leads to charges, it could pose significant political and legal ramifications for James, who until now has positioned herself as a crusader for justice — particularly against Donald Trump and his allies.