NY Attorney General Letitia James Faces Federal Criminal Referral Over Alleged Mortgage Fraud

Edited by: TJVNews.com

New York Attorney General Letitia James — known nationally for her high-profile pursuit of former President Donald Trump and her famous mantra that “no one is above the law” — is now facing serious legal scrutiny of her own. According to a New York Post exclusive report that appeared on Tuesday, James has been hit with a federal criminal referral for alleged instances of mortgage fraud, sparking what could become a politically explosive legal saga for the top law enforcement official of New York State.

The referral, sent Tuesday by Federal Housing Finance Agency (FHFA) Director William Pulte to Attorney General Pam Bondi and Deputy AG Todd Blanche, accuses James of falsifying records to secure favorable mortgage terms for a property purchase in Norfolk, Virginia — all while still actively serving as New York’s attorney general. The New York Post reported that these misrepresentations were allegedly made in August 2023, just weeks before James commenced her civil fraud trial against the Trump Organization — a case that ultimately resulted in a staggering $454 million judgment against Trump and his business empire.

At the heart of the allegations is James’ assertion — on mortgage documents — that the Virginia property would serve as her primary residence. This claim is legally problematic, as New York law requires that the sitting attorney general maintain a primary residence in the state of New York. According to the letter obtained by The New York Post, this potentially false declaration may have allowed James to access lower interest rates and more advantageous loan terms reserved for owner-occupied, primary-residence borrowers.

“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,” Pulte wrote in the referral.

James reportedly authorized the purchase of the Virginia property through a power of attorney granted to a relative, Shamice Thompson-Hairston, who signed the documentation on her behalf. As reported by The New York Post, the mortgage associated with this transaction totaled $218,780.

In addition to the recent Virginia property, the federal referral also draws attention to longstanding concerns about James’ Brooklyn real estate holdings. In February 2001, James purchased a five-family dwelling in Brooklyn, but according to The New York Post, she “consistently misrepresented” the property as having only four units on numerous mortgage applications and building permit filings. This discrepancy, the referral suggests, could amount to a pattern of fraudulent representation — as underreporting the number of residential units can enable an applicant to access mortgage products and building permits with less regulatory scrutiny and lower costs.

The letter also highlights another eyebrow-raising detail from James’ past: records indicating that in both 1983 and 2000, she purchased property with her father listed as a co-signer, while describing the relationship as “husband and wife” — an apparent falsehood. While the events took place decades ago, the referral notes they raise “serious concerns about the validity of Ms. James’ representations on mortgage applications.”

Despite the mounting allegations, James’ office responded forcefully, painting the referral as politically motivated. In a statement published by The New York Post, a spokesperson for the attorney general dismissed the accusations as retaliatory and suggested they were intended to undermine her work.

“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,” the statement read. “She will not be intimidated by bullies — no matter who they are.”

Nevertheless, the allegations are unlikely to fade quietly. As The New York Post report noted, many of the claims outlined in the federal letter had first appeared in investigative reports by White Collar Fraud, an online publication that specializes in uncovering financial wrongdoing. Now that a federal criminal referral has been issued, it could trigger a broader investigation into the potential misuse of mortgage applications and official documentation by a sitting state attorney general.

The implications of these allegations carry a layer of striking irony. James has made her reputation — and perhaps her political future — by casting herself as a fearless crusader against corruption and financial deception. Her high-profile pursuit of Donald Trump, where she accused him of inflating the value of his properties to deceive banks and lenders, was based on similar allegations of financial misrepresentation. Now, she herself stands accused of manipulating mortgage applications to gain better loan terms.

According to The New York Post, should the referral result in an investigation or prosecution, it would not only cast a long shadow over James’ ongoing legal work but could also place her political standing at risk. James has long been considered a rising star in New York’s Democratic establishment — even briefly exploring a run for governor in 2022. A federal probe into her personal finances could stall, or even derail, that trajectory.