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.
