Letitia James Under Fire for Alleged Mortgage Fraud as Critics Say She Must “Live by the Standard She Set”

Edited by: TJVNews.com

New York Attorney General Letitia James is facing mounting scrutiny following revelations that she declared a home in Norfolk, Virginia — more than 300 miles away from her New York City office — as her “principal residence” on official mortgage documents. According to an explosive report by The New York Post that appeared on Wednesday, the declaration was made in August 2023, and federal officials are now investigating whether James made false statements to secure a more favorable mortgage rate, potentially violating federal banking and wire fraud laws.

The modest three-bedroom, two-bathroom property, valued at $240,000, has become the centerpiece of a federal criminal referral filed by Federal Housing Finance Agency (FHFA) Director William Pulte. The referral, obtained by The New York Post, accuses James of falsifying public documents to reduce mortgage costs — a serious charge for any official, let alone the state’s top law enforcement officer.

The Norfolk property transaction, which occurred on August 17, 2023, involved James and her niece, Shamice Thompson-Hairston, to whom James granted power of attorney for the purchase. According to the report in The New York Post, the official mortgage declaration signed by James states unequivocally: “I hereby declare I intend to occupy this property as my principal residence.”

The document was witnessed by First Deputy Attorney General Jennifer Levy, signed by a New York state secretary, and formally notarized, adding multiple layers of formality — and potential legal exposure.

But despite this attestation, local residents in Norfolk told The New York Post they have never seen James at the property. Neighbors say that a woman and her daughter moved into the house just a few months ago, with one long-term resident, who has lived nearby for 18 years, noting: “I’ve only met [the new resident] like maybe two or three times… The last time I saw her was, like, maybe a week or so ago and she was just outside smoking a cigarette and we were talking about her grandkids.”

Another neighbor confirmed the timeline, stating that the current occupants have only lived there for “a little more than three months.” If accurate, this casts doubt on James’s sworn statement from nearly a year ago declaring the home her “principal residence.”

In his referral, FHFA Director William Pulte raised multiple red flags. As reported by The New York Post, Pulte wrote: “It appears Ms. James’ property and mortgage-related misrepresentations may have continued to her recent 2023 Norfolk, VA property purchase in order to secure a lower interest rate and more favorable loan terms.”

He noted that the New York Attorney General is legally required to maintain her primary residence in the state of New York. Listing a Virginia address as her principal home not only violates this mandate, but also opens the door to charges of wire fraud, mail fraud, bank fraud, and making false statements to a financial institution.

The Virginia mortgage James and her niece secured was reportedly for $219,780 — terms that may have been made more favorable based on the misrepresented residency status, The New York Post report noted.

The referral also points to an older pattern of questionable documentation. James is alleged to have misrepresented the number of apartments in a Brooklyn property she owns. While city records from the NYC Department of Buildings indicate the building has five residential units, James repeatedly listed it as having four units — a crucial detail because properties with four or fewer units qualify for better mortgage rates.

The New York Post report explained that this misrepresentation, if intentional, could bolster the case for a pattern of mortgage manipulation — a damning allegation for someone in charge of prosecuting financial crimes in New York.

James’ office responded on Wednesday, stating that the Virginia home was bought with her niece and that Shamice Thompson-Hairston lives there as her primary residence.

In a statement shared with The New York Post, James’ team claimed: “Her niece lives in the home as a primary residence, and the AG has been clear that she is not using the Virginia home as her primary residence, because she lives in New York.”

However, this explanation contradicts the sworn mortgage document, which James herself signed, attesting that she — not her niece — intended to occupy the home as her principal residence. Legal experts say this contradiction alone could prove to be a critical liability in any investigation.

According to the information provided in The New York Post report, the involvement of high-ranking state officials, including Deputy Attorney General Jennifer Levy, who witnessed the document, further complicates the issue and potentially widens the scope of the investigation.

Legal scholars point out that signing a document under penalty of perjury with inaccurate or misleading information — particularly when it concerns a principal residence declaration — could lead to multiple felony charges under federal law, especially when mortgage lenders rely on that information to set loan terms.

The controversy erupted after The New York Post revealed that Federal Housing Finance Agency Director William Pulte submitted a criminal referral involving James to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche, alleging a pattern of misrepresentations that may violate federal bank fraud, wire fraud, and perjury laws. Though Bondi acknowledged in a Fox News interview Wednesday that her office had just received the referral and had not yet reviewed it, she also noted: “You just told me more than I’ve heard about it so far.”

Meanwhile, James dodged reporters outside her Brooklyn home, refusing to answer questions about the case or the Virginia property, further fueling public suspicion and frustration.

Among those now calling for accountability is Michael Henry, the Republican candidate who ran against James for attorney general in 2022. Speaking to The New York Post, Henry turned James’ famous mantra against her: “No one is above the law. James has not denied the legitimacy of the documents. It should be investigated to the fullest extent of the law.”

Henry, who has a background in the mortgage industry, pointed out that power of attorney does not excuse the responsibility of the signer, particularly one with a law degree and the highest law enforcement office in the state.

“Even if she had a power of attorney, she should have read all of the documents in the property records — especially since she’s a lawyer and the attorney general,” he said. “There are clearly some issues here.”

In response to the rapidly unfolding controversy, James’ office released a blistering statement, attacking what it characterized as a politically motivated assault by the Trump administration.

“Donald Trump’s weaponization of the federal government continues to careen out of control – and now they are using cherry-picked information to attack the Attorney General,” the statement read.

“We will have more to share on these political attacks, but the AG and our office remain focused on protecting New Yorkers every single day.”

The New York Post reported that New York City Council Speaker Adrienne Adams, a close political ally and mayoral candidate, also defended James, saying: “Letitia James has spent her career standing up to powerful interests and fighting for everyday New Yorkers. Now she’s being targeted by a president who abuses the power of the federal government to go after his enemies.”

Mayor Eric Adams, speaking on MSNBC’s José Díaz-Balart Reports, struck a more measured tone. Calling James a “longtime friend,” he said: “It’s up to the investigative bodies to do an unbiased investigation… It’s imperative that our criminal justice agencies do what’s right.”

Adams acknowledged that both the Biden and Trump Justice Departments have been criticized for politicization, but stopped short of weighing in on James’ guilt or innocence.

Letitia James made national headlines for her aggressive legal pursuit of President Trump, culminating in a $480 million civil fraud judgment against him earlier this year. But now, as The New York Post reported, she stands accused of engaging in the very behavior she prosecuted Trump for: manipulating real estate values, misstating residency, and potentially misleading financial institutions.

With federal investigators reviewing the criminal referral and critics across the aisle demanding accountability, James faces the gravest ethical and legal crisis of her career. Whether the investigation leads to criminal charges remains to be seen — but what’s certain is that the Attorney General’s credibility is now under serious public examination.

And as her critics are quick to remind her, “No one is above the law.”