FBI Probes NY AG Letitia James for Mortgage Fraud Amid $454M Trump Case, Legal Defense Fund Debate

33 posts • Grok (2)

Updated May 9, 2025, 04:29 AM

The Federal Bureau of Investigation (FBI) and the U.S. Attorney's Office in Albany have initiated a criminal investigation into New York Attorney General Letitia James over allegations of mortgage fraud. The probe was spurred by a criminal referral from Federal Housing Finance Agency Director William Pulte, who accused James of falsifying records to obtain favorable home loans for a Virginia home purchased in 2023 and a Brooklyn brownstone owned since 2001. The allegations include James misrepresenting the Virginia home as her principal residence while serving as New York's Attorney General, and misrepresenting the number of units in her Brooklyn property. These actions are said to have been taken to secure more favorable loan terms. The investigation is being led by U.S. Attorney John A. Sarcone III, an ally of President Donald Trump. James has dismissed the allegations as politically motivated, particularly in light of her office's civil fraud case against Trump, which resulted in a $454 million judgment against him and his real estate firm. She has retained high-powered attorney Abbe Lowell to defend her, with costs potentially covered by New York taxpayers through a proposed $10 million legal defense fund included in the state's budget. The New York legislature has passed a long-delayed state budget that includes a provision allowing state funds to be used for James's legal defense. This move has sparked debate, with critics arguing it represents an inappropriate use of taxpayer money to defend public officials against personal legal battles. The budget was proposed by Governor Kathy Hochul and sent to Attorney General Pam Bondi.

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#Federal Bureau of Investigation #FBI #Albany #New York #Letitia James #Federal Housing Finance Agency #William Pulte #James #Virginia #Brooklyn #Donald Trump #Trump #Abbe Lowell #Kathy Hochul #Pam Bondi

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Sources

nypost.com(5)foxnews.com(2)cbsnews.com(2)reuters.com(2)

New York Post Metro

@nypmetro

New York legislature passes long-delayed state budget — including provision for AG Letitia James’ legal defense https://t.co/kdBwX1LCCg https://t.co/ZlGHhYpwNx

DW Español

@dw_espanol

Justice of #EEUU investigates the attorney general of #NuevaYork #LetitiaJames, a well-known adversary of President #DonaldTrump, is being investigated for alleged mortgage fraud. (mg) Read the full article by clicking on the image. https://t.co/Uevl5TxF85

Sam E. Antar

@SamAntar

.@NewYorkStateAG Letitia James is the perfect example of a serial fraudster (40 years of false mortgages and financial disclosures). https://t.co/Ps6N3buVxa