Councilman Robert Holden Calls for Federal & Local Probe into Jumaane Williams’ Foreclosed Property Dealings, Citing Potential Mortgage Fraud and Ethics Violations

Edited by: TJVNews.com

A growing political and legal controversy is engulfing one of New York City’s highest-ranking elected officials, as City Councilman Robert Holden (D-Queens) has formally requested federal and municipal investigations into Public Advocate Jumaane Williams, alleging serious ethical and financial misconduct tied to a foreclosed property in Brooklyn. The calls for scrutiny stem from what Holden described as “serious red flags,” including potential mortgage fraud, failure to report rental income, and hypocrisy regarding landlord behavior.

According to a report that appeared on VIN News, Holden sent letters Monday to Federal Housing Finance Agency (FHFA) Director William Pulte and New York City Department of Investigation (DOI) Commissioner Jocelyn Strauber, urging both agencies to launch independent probes into Williams’ handling of a now-foreclosed two-family home on East 98th Street in Canarsie, Brooklyn — a property Williams owned for nearly two decades.

“If Mr. Williams misrepresented his financial position, rental income, or occupancy status in mortgage applications or ongoing certifications, he may have violated federal statutes governing mortgage fraud and bank fraud,” Holden wrote in his letter, portions of which were obtained by VIN News.

Williams — a self-proclaimed democratic socialist who earns $184,000 annually as New York City’s Public Advocate — has long positioned himself as a progressive voice on housing issues. His office oversees the city’s well-known “Worst Landlords Watchlist”, a tool meant to call out negligent or abusive property owners. However, Holden argues that Williams may have violated many of the same principles he has built his political brand condemning.

As reported by VIN News, public records reveal that Williams failed to make mortgage payments for over a decade, eventually resulting in the foreclosure of the Canarsie property. Purchased in 2005 for $370,500 and mortgaged for $389,600 in 2006, the home was lost to the bank last month after the debt ballooned to over $944,000. Williams originally co-owned the home with his mother before taking full ownership and allegedly using the mortgage proceeds to fund a failed vegan sandwich shop in Park Slope, which shuttered during the 2008 financial crisis.

The foreclosure proceedings, initiated by Bank of America in 2014, culminated in the property being placed on the auction block. As VIN News reported, no bidders met the bank’s minimum bid, and the property reverted back to the lender.

One of the most serious allegations outlined by Holden is that Williams collected rent from tenants living at the Canarsie property but failed to report the income on required city and state disclosure forms for much of the past 15 years.

While court filings confirm that tenants resided at the property during this time, Williams did not report any rental income on numerous financial disclosures filed throughout his tenure as a City Council member and public advocate. Only in 2022 and 2023 did Williams finally disclose income ranging between $5,000 and $55,000, raising questions about prior omissions.

“This matter is particularly troubling given Mr. Williams’ prominent role in publicly criticizing landlords through the City’s ‘Worst Landlords Watchlist’ while allegedly engaging in similar misconduct himself,” Holden wrote, in a statement featured prominently in the VIN News report. “The apparent hypocrisy, combined with the scale of financial mismanagement and possible deception, undermines public confidence in elected leadership.”

Holden further warned that any false statements made on mortgage applications or city financial disclosures could constitute violations of federal bank fraud laws or local ethics rules, both of which carry legal and political consequences.

In response to the controversy, Williams’ office has flatly denied any misconduct, describing the investigation request as a “politically motivated stunt.” Spokesman Kevin Fagan told reporters that Holden’s assertions were based on a “false premise.”

“Councilman Holden has every right to request wasting time and money investigating a decade-old non-story on a false premise — though it would have been more efficient if he’d simply looked at the public records and seen that the public advocate has accurately reported any rent collected and filed required disclosures,” Fagan said, as quoted by VIN News.

Still, the FHFA and the DOI both declined to comment when reached by VIN News, citing agency policy on pending or potential investigations.

Jumaane Williams has served as New York City’s public advocate since 2019, following a nearly decade-long tenure representing parts of Brooklyn on the City Council. During that time, he has emerged as one of the city’s most vocal progressives, often using his platform to challenge landlords, developers, and government agencies over housing equity and tenant protections.

But as the VIN News report noted, the foreclosure scandal may complicate his image as a fierce protector of renters and a watchdog against landlord abuse. Critics argue that Williams’ apparent financial negligence—and the discrepancy between his rhetoric and his private dealings—undercuts the credibility of his office.

Councilman Holden, a frequent centrist voice in the Democratic Party, did not mince words in describing what he sees as Williams’ double standard. “It’s not just about unpaid mortgages or sloppy paperwork,” he wrote. “It’s about whether someone who has spent years positioning himself as a guardian of public ethics has actually adhered to those same principles in his own affairs.”

Questions remain about whether formal investigations will proceed, and whether Williams may face disciplinary action, financial penalties, or broader political fallout.

In a city where real estate and ethics often collide, the spotlight now turns to the Public Advocate’s office—and whether the man tasked with holding others accountable will be held to the same standard.