New York Attorney General Letitia James talked at a press conference in New York about the financial fraud case involving former President Donald Trump and his family on September 21, 2022. Meanwhile, Donald Trump was seen speaking at a ‘Save America’ rally in Robstown, Texas on October 22, 2022.
The Trump administration accused Letitia James, a Democrat and New York’s Attorney General, of mortgage fraud in a criminal referral to the U.S. Department of Justice on Monday.
A 3-page referral was sent by Bill Pulte, Director of the Federal Housing Finance Agency (FHFA), to U.S. Attorney General Pam Bondi and Deputy Attorney General Todd Blanche.
The agency alleges James, in “multiple instances, falsified bank documents and property records” in order to secure “government backed assistance and loans and more favorable loan terms.”
The Empire State’s top law enforcement official has long been a thorn in President Donald Trump’s side. In 2019, James began a civil fraud investigation into the Trump Organization, and a lawsuit followed in 2022. In 2023, on motions for summary judgment, the company and several Trump family members were found liable for fraud. In early 2024, the judge overseeing the matter issued a civil penalty of $354 million.
Now, the alleged fraud shoe is on the other foot.
In the letter, which refers to “media reports” but does not directly cite any, Pulte says James “potentially” falsified “residence status for a Norfolk, Virginia-based home in order to secure a lower mortgage rate” and misrepresented “property descriptions to meet stringent requirements for government backed loans” and assistance.
In August 2023, James allegedly listed the Old Dominion property as her “principal residence” in a Fannie Mae/Freddie Mac form and subsequently “reaffirmed [the Virginia property] would be her primary residence” in mortgage documents, according to the letter.
Then, in July 2024, a building permit says James’ New York property is described as the “James Residence” and a box is ticked saying the property “Remain Occupied,” according to the letter.
“Primary residence mortgages receive more favorable loan terms, including lower interest rates, than secondary residence mortgages,” the letter reads. “At the time of the 2023 Norfolk, VA property purchase and mortgage, Ms. James was the sitting Attorney General of New York and is required by law to have her primary residence in the state of New York-even though her mortgage applications list her intent to have the Norfolk, VA property as her primary home.”
The letter also accuses James of downplaying the size of her apartment building in Brooklyn. A January 2001 certificate of occupancy lists the property as a five-family dwelling; in February 2001, however, James secured a certain type of loan only available for buildings with four or fewer units, Pulte’s letter alleges.
“Spanning the last two decades, Ms. James has consistently misrepresented the same property as only having four units in both building permit applications and numerous mortgage documents and applications,” the letter reads. “Ms. James may have listed the Brooklyn, NY property as four units instead of five units in order to meet the conforming loan requirements, and thus receive better interest rates. Ms. James also appears to have used this same falsification in order to receive mortgage assistance.”
Finally, in an analysis section, the letter contains allegations about James and her father that likely fall beyond statutes of limitations.
From the letter, at length:
For your reference, I have also attached documentation which shows in 1983 that Ms. James and her father signed mortgage documents that stated that they were husband and wife in order to secure a home mortgage. Then, on May 4, 2000, Ms. James was listed again as “husband and wife” in documents. While this was a long time ago, it raises serious concerns about the validity of Ms. James representations on mortgage applications.
“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,” a spokesperson told Law&Crime in an email. “She will not be intimidated by bullies — no matter who they are.”
Love true crime? Sign up for our newsletter, The Law&Crime Docket, to get the latest real-life crime stories delivered right to your inbox.
On Sunday evening, the 45th and 47th president referenced the fraud allegations against James, though not the FHFA referral, by linking to a news article in a post on Truth Social.
“Letitia James, a totally corrupt politician, should resign from her position as New York State Attorney General, IMMEDIATELY,” Trump wrote. “Everyone is trying to MAKE NEW YORK GREAT AGAIN, and it can never be done with this wacky crook in office.”
No charges have been filed against James.
