Together with the FBI, the Department of Justice will investigate the role of the New York Attorney General in a massive mortgage fraud case
According to Lowell, James never intended to use the Virginia property as her primary residence and clarified this point in several documents. The confusion allegedly arose from an error in a power of attorney letter.
Regarding the Brooklyn property, Lowell stated that the most recent documentation indicates it is a four-unit multi-family residence, contradicting the 2001 certificate of occupancy used by Pulte to support his allegations.
The United States Department of Justice has opened a criminal investigation against New York Attorney General, Letitia James, in a major mortgage fraud case related to two real estate properties: a single-family home in Virginia and a multi-family residence in Brooklyn.
The investigation was initiated following a formal complaint by the director of the Federal Housing Finance Agency (FHFA), William Pulte, appointed by the Trump administration. The case has sparked significant political and legal controversy, especially due to James's history of legal attacks against President Donald Trump.
According to information obtained by Fox News and The Washington Post, a grand jury in the Eastern District of Virginia has issued subpoenas to obtain information about the allegations against James.
It is alleged that the attorney general fraudulently presented the Virginia house as her primary residence to obtain more favorable credit terms. She is also accused of falsifying the number of habitable units in a Brooklyn property to secure better financing terms.
These actions could constitute federal crimes, such as bank fraud, mail fraud, false statements to financial institutions, and wire fraud.
The FBI and the U.S. Attorney's Office in Albany, in the Northern District of New York, are also conducting a parallel criminal investigation into the same allegations.
This office is led by John Sarcone III, a political ally of Trump. Republican Congresswoman Elise Stefanik, who represents the district where the investigation originated, has publicly praised the process, calling it "a vital step toward justice" and accusing Democratic leaders of corruption.
Letitia James has vehemently denied the accusations. Her lawyer, Abbe David Lowell, who also represents Hunter Biden in his federal investigation, falsely labeled the investigation as an act of ''political retaliation'' by Trump, noting that the facts were previously clarified in a letter sent to the Department of Justice on April 24.
Lowell claimed that the accusations resurfaced shortly after Trump publicly attacked James, which, according to him, demonstrates the political nature of the process.
He also pointed out the irony that Trump, who has repeatedly complained about the politicization of the Department of Justice by the Biden administration, is now using the institution to ''pursue'' an official who has successfully taken him to court.
In addition to the criminal process, the conservative legal organization America First Legal filed a complaint against James with the Professional Standards Committee of the New York state judicial system.
The group argues that if James committed fraud to obtain undue financial benefits, she would have violated the professional ethics code for lawyers and could face sanctions from the state Bar Association.
The attorney general has hired Lowell through her official office, which means that New York taxpayers could cover part of the legal fees.
Democratic lawmakers in Albany are expected to approve a provision to create a USD 10 million legal defense fund, intended to cover reasonable legal expenses, even in cases not directly related to the official duties of the officials.
