New York Attorney General Letitia James, who aggressively pursued President Trump, now finds herself the target of an FBI investigation for alleged mortgage fraud spanning properties in Virginia and Brooklyn.
Key Takeaways
- The FBI and US Attorney’s Office have launched a formal investigation into NY Attorney General Letitia James over alleged mortgage fraud in Virginia and Brooklyn properties
- Federal Housing Finance Agency Director William Pulte made a criminal referral claiming James falsified property records and misled lenders about her residency
- US Attorney John Sarcone III criticized James for “unethically” campaigning in 2018 on investigating President Trump without specific allegations of wrongdoing
- James allegedly claimed a Virginia property as her primary residence in 2023 despite being legally required to reside in New York as the state Attorney General
- James denies all allegations, claiming the investigation is politically motivated retaliation for her civil fraud case against President Trump
FBI Launches Criminal Investigation Into NY Attorney General
The Federal Bureau of Investigation and the US Attorney’s Office for the Northern District of New York have opened a formal criminal investigation into New York Attorney General Letitia James. The probe centers on allegations that James committed mortgage fraud by misrepresenting information on applications for properties in Virginia and Brooklyn. According to reports, James is accused of falsely claiming a Virginia home as her primary residence in 2023, despite her position as New York Attorney General legally requiring her to reside in New York state.
The investigation stems from a criminal referral by William Pulte, Director of the Federal Housing Finance Agency, who alleges James falsified property records and provided misleading information to mortgage lenders. Investigators are also examining discrepancies surrounding a Brooklyn property James purchased in 2001, with questions about whether she accurately represented financial and residency information on those documents as well.
🚨I commend the FBI and the U.S. Attorney for the Northern District of New York for investigating New York Attorney General Letitia James over mortgage fraud. Nobody is above the law. These serious allegations—falsifying records to secure favorable loan terms on properties in… pic.twitter.com/zDotSYscUp
— Elise Stefanik (@EliseStefanik) May 8, 2025
Questions of Political Bias in James’s Prosecutorial Approach
US Attorney John A. Sarcone III has publicly criticized James’s 2018 campaign tactics, highlighting concerns about potential political bias in her prosecutorial approach. “The US attorney said James ‘unethically ran around the state campaigning on getting Donald Trump,’ and essentially accused her of finding a criminal target without an alleged crime,” stated US Attorney John A. Sarcone III.
“When I first heard that the attorney general had been referred, there was a criminal referral made by the director of the federal Housing and Finance Agency, my initial response was, ‘Oh boy, here we go. Trump is just weaponizing the departments and, in this case, referring to the DOJ, and I’m sure this was all nonsense,” said Dan Abrams, Mediaite founder.
During her 2018 campaign for Attorney General, James repeatedly vowed to investigate President Trump’s real estate dealings without specifying any particular crimes. This approach has been criticized as evidence of a politically motivated agenda rather than a legitimate law enforcement initiative. President Trump has consistently maintained that James’ investigations into his business empire constitute a politically motivated witch hunt designed to damage him politically.
Serious Allegations with Potential Consequences
Mediaite founder Dan Abrams expressed surprise at the lack of mainstream media coverage despite the gravity of the accusations. “But then I read what they were alleging. This is real. This is serious, and I think this could mean big trouble for the attorney general,” said Dan Abrams, Mediaite founder.
The allegations against James are particularly ironic given her aggressive pursuit of President Trump for alleged financial fraud. If proven, these accusations could result in federal charges that carry significant penalties and would undoubtedly damage her credibility as New York’s top law enforcement officer. James has denied any wrongdoing, characterizing the investigation as politically motivated retaliation for her civil fraud case against President Trump.
The investigation represents a significant development in the ongoing political and legal battles surrounding President Trump and those who have sought to prosecute him. As the probe unfolds, it raises serious questions about whether James’ pursuit of President Trump was conducted with proper legal motives or was driven by the political agenda she openly campaigned on in 2018.
