New York Attorney General Letitia James Faces Federal Scrutiny Over Alleged Mortgage Fraud
New York Attorney General Letitia James Faces Federal Scrutiny Over Alleged Mortgage Fraud
New York Attorney General Letitia James is under scrutiny following a federal referral that suggests she may face criminal charges for alleged mortgage fraud involving properties in Virginia and Brooklyn, according to CBS News reports over the weekend.
William Pulte, Director of the Federal Housing Finance Agency, sent a letter to U.S. Attorney General Pam Bondi, claiming that James may have falsified bank documents and property records on several occasions to secure government-backed assistance, loans, and more favorable mortgage terms.
The letter alleges that James misrepresented her primary residence to obtain better mortgage rates for a Norfolk, Virginia property purchased in 2023. Pulte asserts that James assigned power of attorney to Shamice Thompson-Hairston, designating the Virginia home as her “principal residence,” despite the requirement for her to reside in New York due to her position as Attorney General.
Pulte highlighted that at the time of the Norfolk property purchase and mortgage, James was serving as New York’s Attorney General, which legally necessitates her primary residence to be in New York, even as her mortgage applications indicated intentions to make the Virginia property her main home.
The letter also points to a Brooklyn property purchased by James in 2001, claiming that she misrepresented it as a four-unit building— the maximum allowed for certain loan programs— when it actually had five units. This discrepancy may have allowed her to qualify for lower interest rates.
Another concern raised involved a 1983 mortgage document, where James and her father allegedly signed as husband and wife, which could have implications for her eligibility.
Pulte concluded that if the allegations are proven, James could face charges including wire fraud, mail fraud, bank fraud, and making false statements to financial institutions. Bondi acknowledged receiving the referral and stated that her office would conduct a review.
Pulte wrote, “Over the last two decades, Ms. James has consistently mischaracterized the same property as having four units in various mortgage documents and building permit applications,” implying this tactic may have been used to meet loan eligibility requirements for better interest rates.
In response, a spokesperson for James stated, “Attorney General James is dedicated to protecting New Yorkers every day, particularly as this administration weaponizes the federal government against the rule of law and the Constitution. She will not be intimidated by bullies, no matter who they are.”
James later called the allegations “baseless” in an appearance on NY1, characterizing them as part of a “revenge tour” linked to political retaliation after her high-profile lawsuit against former President Donald Trump.
In 2022, James led a civil case in which Trump and his organization were found liable for fraud, facing penalties exceeding $500 million with interest.
Governor Kathy Hochul weighed in, stating that James should have the opportunity to address the allegations. “He said he was going to go after his enemies… and he’s finally gotten down to maybe the J’s on his list — Tish James,” Hochul remarked.
Legal expert Nicole Brenecki pointed out the potential severity of the allegations, noting that James could face civil fraud charges if substantiated. However, she also mentioned that statutes of limitations may limit the applicability of older claims, including those related to the 1983 document.
As of now, James has not been formally charged with any crimes.
