FBI Probes NY AG Letitia James for Mortgage Fraud Amid $354M Trump Judgment, Virginia Grand Jury Impaneled

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Updated May 8, 2025, 05:43 PM

The Federal Bureau of Investigation (FBI) and the U.S. Attorney's Office for the Northern District of New York have launched a formal criminal investigation into New York Attorney General Letitia James over allegations of mortgage fraud. The probe centers on claims that James misrepresented key information on mortgage applications for properties in Virginia and Brooklyn. The investigation was initiated following a criminal referral by Federal Housing Finance Agency Director William Pulte, who alleged that James may have falsified property records and misled lenders to secure government-backed loans and favorable mortgage terms. James has denied any wrongdoing and described the investigation as politically motivated, referencing her office's civil fraud case against President Donald Trump, which resulted in a $354 million judgment against him and his real estate firm. Federal prosecutors have also impaneled a grand jury in Virginia to investigate these allegations, indicating a multi-pronged approach to the case. The referral claims James falsely claimed a Virginia home as her primary residence in 2023, despite her legal obligation to reside in New York, and discrepancies regarding the number of units in her Brooklyn property purchased in 2001. U.S. Attorney John A. Sarcone III criticized James's 2018 campaign rhetoric about investigating Trump, suggesting that her focus on Trump may have been unethical. James's lawyer, Abbe Lowell, has argued that the claim about the Virginia property was a mistake and that she had informed the mortgage broker that the house would not be her primary residence. During her 2018 campaign, James had vowed to pursue legal action against Trump, famously declaring that 'no one is above the law.'

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

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Sources

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Mediaite

@Mediaite

FBI Opens Formal Investigation Into NY AG Letitia James, Who DOJ Says 'Unethically' Campaigned on 'Getting Donald Trump' https://t.co/SWfZswA7NN

Sam E. Antar

@SamAntar

Memo to @NewYorkStateAG Letitia James: The FBI probe in New York isn’t your only problem. According to The Guardian, a grand jury has now been empaneled in Virginia. Next up? The U.S. Postal Inspectors for mail and wire fraud—and the IRS for potential tax evasion. You can thank https://t.co/pyqyk08gkT

Resist the Mainstream

@ResisttheMS

JUST IN: FBI launches criminal investigation into NY AG Letitia James over alleged fraud. James has probed Trump in a case that landed a $454 million judgment against him and his real estate firm. She infamously declared that “no one is above the law” during the investigation's https://t.co/BmgRECD2KC