The Trump administration has officially referred New York Attorney General Letitia James to the Department of Justice for potential criminal prosecution, citing alleged mortgage fraud involving misrepresented property information on multiple transactions.
According to documents submitted by Federal Housing Finance Agency (FHFA) Director William Pulte, James is accused of falsely claiming a property in Norfolk, Virginia, as her primary residence in 2023 in order to secure preferential mortgage terms. At the time, James was already serving as New York’s top law enforcement official, and her primary residence was listed as New York—calling into question the legality of her loan application.
In a second incident, James allegedly misrepresented the unit count on a Brooklyn investment property by claiming it had four units instead of five. That distinction is significant, as properties with five or more units fall under different lending guidelines and would not qualify for certain loan programs or favorable rates.
The referral also highlights a decades-old mortgage document signed in 1983, where James and her father reportedly signed as “husband and wife,” a classification that raises further questions about the accuracy of her legal representations to lenders over the years.
Letitia James’s office quickly dismissed the allegations, claiming they are politically motivated. A spokesperson accused the Trump administration of “weaponizing the federal government” in retaliation for James’s legal attacks on the former president. James led a high-profile civil fraud case against Donald Trump and the Trump Organization, which culminated in a $464 million judgment.
While critics of Trump have labeled the referral as payback, supporters argue that it highlights the importance of holding public officials to the same legal standards they enforce on others. “If she expects others to be held accountable for misrepresenting financial information to banks, she should be held to that standard herself,” one legal analyst noted.
The Department of Justice has not yet announced whether it will open a formal investigation into the matter. However, legal observers say the case could carry weight, particularly since the very accusations mirror the kind of conduct James prosecuted in her civil suit against Trump.
If the DOJ moves forward, the investigation could put James—one of the Left’s most vocal prosecutors—under the kind of scrutiny she has often demanded for her political opponents. And for many, that’s not retaliation—it’s long overdue accountability.