New York Attorney General Letitia James is now facing a criminal referral from the Trump administration over allegations of mortgage fraud—just weeks after securing a controversial half-billion-dollar judgment against President Trump.
At the center of the referral is a property in Virginia, which James allegedly claimed as her primary residence in order to secure favorable mortgage terms—despite evidence suggesting she never intended to live there. The criminal referral was submitted by Federal Housing Finance Agency Director William Pulte, who accused James of misrepresenting her residency on mortgage documentation, a potential violation of federal housing laws.
In a move raising eyebrows across the political spectrum, James has now retained Abbe Lowell as her defense attorney—the same high-powered Washington lawyer who previously represented Hunter Biden in multiple federal investigations. The decision to hire Lowell has fueled criticism that James is circling the wagons with the same political and legal apparatus often used to shield Democrat elites from accountability.
Lowell has claimed the referral is nothing more than “political retribution,” insisting that James had no intent to deceive lenders and that the loan was actually intended for her niece. He called the accusations “manufactured” and pointed to internal emails and paperwork he says support James’ version of events. However, critics argue that the AG’s signature on a power-of-attorney document affirming the home as her “primary residence” speaks for itself.
“This isn’t just a paperwork error—this is fraud,” one administration official said. “Any ordinary American who pulled this would be in jail, not lawyering up with Hunter Biden’s fixer.”
The Department of Justice has so far declined to comment on the matter, while Attorney General Pam Bondi has acknowledged receipt of the referral. It remains unclear whether Bondi’s Justice Department will open a formal investigation, but sources say additional documentation may be forthcoming.
James, meanwhile, is attempting to deflect the scandal by painting herself as the victim of political retaliation—despite her own years-long legal crusade against Trump and other political opponents, often using her office as a blunt instrument of partisan warfare.
Her office released a statement claiming she remains “focused on the job,” and dismissed the allegations as “an attack on the rule of law.” But Republican lawmakers say it’s yet another example of selective justice—where Democrats weaponize power with impunity while dodging accountability themselves.
Letitia James is already facing criticism over her handling of civil fraud cases, her ties to partisan donors, and now, her questionable financial dealings. If the DOJ pursues the case, it could mark a stunning reversal of fortune for a woman who built her political brand by targeting Trump—only to find herself facing possible federal charges of her own.